Chancellor to 'water down' road tax rise

Date: 24th September 2008

Proposed rises in road taxation are likely to be "watered down" due to parliamentary pressure, the Evening Standard has reported.

Chancellor Alistair Darling had proposed to increase road duty charges, but backed down after it was made clear he would face a Commons defeat.

According to the newspaper, up to 60 Labour MPs threatened to throw-out the changes - which would have seen road taxes increase to as much as £245 a year - once they reached the parliamentary reading stage.

A spokesman for the Treasury told the Evening Standard: "Obviously all tax policies are kept under review as a matter of course. We listen to concerns that are raised."

Chancellor Darling is now expected to make concessions regarding road tax changes at his pre-Budget report in the next few months.

Backbenchers' primary complaint over recent "green" road duties has been that they should only affect new cars, instead of targeting older vehicles.

HM Revenue and Customs has issued a reminder that self-assessment tax returns should be filed with the department by January 31st at the latest.