Leaked report suggests Government is considering 'feebates' for new cars
Mon 17 September 2007
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A news report based on a leaked Treasury paper says that the Chancellor is considering the introduction of a purchase tax of up to £2000 on high carbon cars which will be used to pay for subsidies on the purchase of the least polluting vehicles.
The 15-page paper, headlined Options for PBR 07 / Budget 08 which is the basis of an article in The Times, suggests that the Chancellor is considering introducing this feebate scheme and is also looking at the rates of duty levied in Vehicle Excise Duty (VED).
The Conservatives 'Quality of Life' report proposals also include a purchase tax or feebate scheme as well as increased gradations in VED. The Liberal Democrats also favour a significant steepening of the emissions-based VED system.
Proposals for the introduction of a feebate scheme was one of the winning papers in the LowCVP's 2006 Low Carbon Road Transport Challenge which invited policy bodies and think tanks to propose innovative options for the reduction of CO2 from the road transport sector.
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