More green motoring taxes in the next Budget

Gordon Brown’s pre-Budget report says that fuel duty is going up 1.25p per litre from midnight. Although the increase is only in line with inflation, he isn’t formally re-linking petrol prices to inflation, and the fuel duty escalator will not be restored. The last duty increase was three years ago.

Good news for Saab, Ford and others - tax discounts for biofuels will be extended. The report says that there will be “A package of measures to encourage the biofuels market and innovative types of biofuels.”

Also air passenger duty will increase from £5 to £10 for most flights (from February 2007), and stamp duty on some “carbon neutral” new homes could be scrapped.

Green-Car-Guide says :"Watch out for more similar announcements following the government’s Stern review, which set out the case for using taxation to encourage people to behave in a more environmentally-friendly way."