UK ANTI-STAG LEGISLATION

[Mike Wattam <MikeWattam@domain.elided>]

Hi All UK members

Following is the text of a message I have received today.

Mike Wattanm
Chairman - Triumph Stag Register
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FOR THE ATTENTION OF ALL AUTOMOTIVE E-MAIL GROUP MEMBERS.
 
Right now we are completing our response to the Treasury's consultation
paper reviewing Vehicle Excise Duty. In essence the Treasury wants to link
the amount one pays and the environmental friendliness of the car one
drives. There is a commitment in the Government's Integrated Transport
Policy to a low rate for low emissions vehicles.
 
The deadline for the consultation response is January 31st. There are many
issues to sort out and it is a complex matter if you really want to connect
VED to emissions. I think we had all become wary of it becoming an excuse
for the Treasury to raise more VED through the back door (just like the
fuel duty escalator which has no environmental benefit of any sort) but
equally so had accepted that a bit of time was needed to establish a fair
method of calculation.
 
As a result of a rash of phone calls I had last week, it is now obvious
that the whole thing is going to be rushed through in time for announcement
in the next budget which may be delivered in the week commencing March
15th. 
 
In my opinion, that raises the chances very considerably indeed of it being
an environmental fudge and the whole project raising at least 10 per cent
more for the Treasury.  The worst case scenario is that the DETR and the
Treasury decide it is all too difficult, and put an engine size break in
at, say 1200cc and 2000cc without any recognition of emissions and cleaner
cars.
 
Graduated VED could get go-ahead in next Budget
THE Government could give the thumbs-up to the introduction of graduated
vehicle excise duty in the Budget and announce an implementation date, it
was claimed this week. As industry experts try to guess Chancellor of the
Exchequer Gordon Brown's Budget plans for the fleet industry, wider motor
industry expectations were high that the Budget's transport focal point
would be reform of the present VED system. 
 
Despite widespread industry discontent at many of the proposals in the VED
consultation document - the consultation period ends on January 31 - it is
possible that Brown's Budget announcement could reveal a start date,
although full details of the new scheme may not be divulged. Association of
Car Fleet Operators director Stewart Whyte said that despite criticism of
the system the basis for the new system could be announced and he suggested
it could be introduced as soon as April 1. 
 
Other commentators were less optimistic, suggesting it was too soon for the
basis of reform to be announced although a start date of September or
October could be revealed. Christopher Macgowan, chief executive of the
Retail Motor Industry Federation, said: 'I would be amazed if the
Government got its act together on VED changes within a year.'   Source:
FleetNet News.

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