Budget '05 - Chancellor revises VED bands to reflect new eco-label
Fri 18 March 2005
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In his March Budget, the Chancellor announced that the annual road tax (VED) bandings are to be realigned in order that they are consistent with the new car environment label launched by LowCVP in February.
The VED bandings are to be renamed A to F, rather than the previous AAA to D, while retaining the current carbon dioxide emissions levels.
The Chancellor also announced a modest widening in the tax rates between the lowest and higher carbon bands.
In his first major speech on 'green' issues - delivered just before the Budget - the Chancellor told an international group of finance, energy and environment ministers that environment concerns must be put at the centre of economic policy-making.
He said: "Environmental issues - including climate change - have traditionally been placed in a category separate from the economy and from economic policy. But this is no longer tenable."
Related Links
LowCVP press release
FT - Brown environment speech story
Budget 2005 - Environment section download
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