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'Showroom tax' attacked

The Budget's proposed 'showroom tax' - which will see some future car loans customers charged £950 if they purchase a high-emissions vehicle - has come in for criticism.

Cars producing more than 255g of carbon per kilometre on the road are in line for the one-off levy, which is to be introduced in 2010.

Higher road taxes are also on the agenda for these vehicles, which will include many 4x4s and large estate cars.

An extra £735 million is set to be earned through the charges, the Daily Telegraph reports.

Speaking to the newspaper, AA spokesman Edmund King commented: "The increase in vehicle excise duty for high-polluting vehicles will catch out many motorists.

"Drivers want cleaner, greener cars but we must ensure that the proposals are not just a green smokescreen for allowing the Treasury or local authorities to take more cash from the motorist."

Shadow chancellor George Osbourne was also critical of the 'showroom tax', saying that "millions of families" would be left out of pocket as a result of the levy.

"This is a bad news Budget which kicks Britain's families when they're down," he added.

"The cost of living is already rising fast and the government has added to it with stealth taxes on cars."

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