David Ruffley MP has today warned that it will be Suffolk's lowest earners who will be hardest hit when Vehicle Excise Duty (VED) is increased.

New figures from the Treasury have revealed that the VED changes introduced in the budget will hit more than a million of the UK's lowest earners with a tax rise above inflation.

Over half of car owners in households earning £15,000 a year or less face above-inflation rises in road tax.

David said:

'New figures from the Government suggest that more than a million of the UK's lowest earners will be hit with an above-inflation tax rise by these changes to VED. This tax on the low paid will hit some of the worst off families in Suffolk with yet another financial blow.

'For some households in Suffolk, paying the road tax increases of over £240 extra will be equal to a week's take home pay. Nationally an estimated 750,000 households earning less than £15,000, with the oldest cars registered before 2001 will pay nearly triple inflation rises in VED.

'For families with cars purchased since 2001, the figures suggest that a further 590,000 people will pay above inflation rises. Some of those will be hit with a £200 plus increase in road tax due to retrospective backdating of the tax to higher emissions cars registered since 2001.

'After the low blow of the 10p tax change and the debacle that followed one would have thought that the Prime Minister would want to give people certainty over their financial future. Instead Gordon Brown is holding out to the last minute and, once again, appears unable to make a decision.

'I will be demanding that the Government perform a U-turn on this issue- this change to VED will hit some of the worst off people in our community.'