Treasury stands by plans to increase vehicle excise duty

The Treasury is standing by its plans to increase car tax on the most polluting cars bought since 2002.

Members of Parliament voted against an amendment to to the Finance Bill, which was proposed by the Conservatives, to prevent vehicle excise duty applying to all cars registered since 2001. The move was rejected by 303 votes to 240 despite criticism of the government’s plans to implement new vehicle excise duty rates and bandings that penalise drivers of gas-guzzling cars.