Car Leasing News

In a bid to save the environment, the budget is likely to make cars with higher CO2 emissions more expensive.

Following recommendations of a report by the Treasury of Julia King, the vice-chancellor of Aston University, that requested the government to discourage the purchase of these polluting cars by either raising their price or the running cost, the Chancellor Alistair Darling is expected to introduce a levy on new large cars that could increase their price by ₤2,000, in the budget that he is scheduled to present on Wednesday.

This comes after deliberation which pointed out to the fact that customers would be more discouraged to buy a car if its showroom price itself was high than if they had to pay more road tax. Existing road tax stipulates that cars that produce emissions less than 100g/km are not require to pay road tax. This is then increased on a sliding scale with a tax of up to ₤245 for cars that produce more than 224g/km. Road taxes could also be modified further to favour the environment friendly cars.

Additional measures include increased fuel duties, up by 2p per liter, which are to be enforced from April onwards. This move has been widely criticized by haulers who want the government to strike down this duty increase.

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