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MINISTERS HINT AT CAR TAX CLIMBDOWN

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Gordon Brown is listening to road tax concerns, colleagues say

Tuesday May 27,2008

Ministers hinted at another Government tax climbdown amid stark warnings that Labour is alienating the ordinary voter on a range of issues.

Senior Cabinet colleagues insisted the Prime Minister is "listening" to anger over a planned increase in road tax on gas guzzling cars expected to hit nearly 18 million people.

The row has again put Mr Brown under pressure from Labour MPs who forced him this month to give ground over the abolition of the 10p rate of income tax.

They have given warning that public fury over changes to vehicle excise duty (VED) could reach the same proportions as the 10p tax debacle.

One complained that the issue was only one of many leaving traditional Labour supporters disaffected with the Government.

"I'm getting complaints from our core Labour vote that they feel the Labour Government is just hitting them left, right and centre," Labour's Bolton South East MP Brian Iddon warned.

"They are heavily bruised at the moment."

As well as the VED reform, Dr Iddon cited the ban on smoking in public places and rising alcohol and food prices as particular causes of anger.

"They just don't think the Labour Government is standing up for them anymore," Dr Iddon said.

He is among more than 30 Labour MPs to have signed a Commons motion expressing concern at the retrospective change to VED bands which will affect all cars bought since 2001. They are concerned that many people have purchased cars in recent years with no knowledge of the green incentives announced in this year's Budget to be applied retrospectively.


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