Darling faces fight over car taxing plans

CHANCELLOR Alistair Darling today faces a challenge to plans to increase car tax on the most polluting vehicles to up to £455.

The House of Commons will consider a Conservative amendment to the Finance Bill which would stop the new vehicle excise duty (VED) rates being applied to cars bought before the tax hike was announced in March's Budget.

They hope to win support from some of the 49 Labour MPs who have signed a parliamentary motion branding the move "retrospective" and urging Mr Darling to reconsider his decision to apply the new rates to all cars registered since 2001.

But it is thought unlikely that enough Labour MPs will be willing to join Tories to threaten the Government's majority in voting on the Finance Bill this evening.

Mr Darling last night avoided a threatened Labour rebellion over the scrapping of the 10p income tax rate, when backbench critics agreed not to force a vote on their proposals to ensure that all those losing out are fully compensated.

The challenge was called off after Treasury minister Jane Kennedy said Mr Darling would bring forward proposals in his autumn Pre-Budget Report on the issue.