Budget to target 'gas guzzlers'

Gordon Brown will increase taxes on so-called 'gas guzzling' cars in this week's Budget, according to reports.

In his tenth Budget statement, the chancellor is said to be planning to raise annual car tax on vehicles which emit more than 185 grams of carbon dioxide per kilometre, as part of the government's target of reducing the UK's carbon emissions by 60 per cent before 2050.

The Sunday Times predicts that the increased tax will apply to a range of popular vehicles including the Jaguar 4.2 litre Super V8, the BMW X5 and the Jeep Cherokee.

Drivers of such cars could find their annual car tax bill increasing from £165 to nearly £200.

However, the Mr Brown is not expected to increase fuel duty – a move that is unlikely to please environmental campaigners.

Tony Juniper, director of Friends of the Earth, speaking to the Guardian, raised concerns that the government was not doing enough to combat global warming.

"This government's performance on climate change, in spite of all the grand speeches, is becoming ever more disappointing," said Mr Juniper.

He added: "It is incredible and pathetic that the chancellor can leave fuel duty unchanged at a time when the cost of using public transport is going up."

This comes as BioEthanol E85, an environmentally-friendly alternative to petrol, goes on sale for the first time in the UK.

BioEthanol E85 can be used to power new models like Saab's 9-5 Aero Bio Power and Ford's Flexible Fuel Vehicle. It offers improved engine performance and lower emissions.

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