Brown facing new Commons revolt

Car tax could be a serious political issue

Tuesday, 01, Jul 2008 12:01

Gordon Brown is facing yet another test of his authority today as the finance bill goes through its last stages in the Commons.

Up to forty Labour MPs are threatening to vote for a Conservative amendment to the bill, which would scrap plans to increase car taxes retrospectively.

Forty Labour backbenchers have singed a motion opposing the tax and at least some of them are threatening to support the Tories on the issue.

Car tax is traditional Conservative territory, with plenty of supportive tabloid headlines available for any party which stands up to them, but Labour backbenchers are concerned the tax will hit low-income families just when fuel costs are already taking their toll.

They are calling on the chief whip to give assurances of an autumn review by the Treasury to stop them voting for the Conservative amendment.

Meetings last week between the chancellor and various backbenchers led to rumours of a possible climbdown, but the Treasury have denied that is the case.

Labour rebels are being led by Ronnie Campbell, Labour MP for Blyth Valley.

" want some guarantee that he [Darling] is acting on our argument to scrap it," he said.

"If there is no commitment to review then we will have to vote for the Tory amendment. It would be silly not to vote for the amendment if we agree with it."

The debate comes as a new Ipsos Mori poll shows petrol prices moving to the forefront of people's minds, with 16 per cent now saying they are important. This represents the highest level of concern about this issue since December 2000.

The car tax increase could top £200 if the plans come into force.