The Government is exploring a taxpayer-funded “car scrappage scheme” – already tried in France and the US, and being discussed in Italy – to ease the pain of vehicle excise duty (VED) rises for more polluting cars. Last month, it was revealed that about 2.3 million people will be made worse off – twice the number of people still losing out because of the scrapping of the 10p tax rate. Hardest hit will be owners of older, band F family cars – such as Citroen C8, the Renault Espace and the VW Passat – who will see their £210 car tax rise to £430 or £455 by 2010.
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