Sunday, May 25, 2008

GLOBAL WARMING FORGOTTEN: CRISIS-HIT BRITISH PM TOLD TO SCRAP CAR TAX RISES

Gordon Brown is being urged by ministers to scrap rises in car taxes and petrol duty as he struggles to regain popularity after a humiliating by-election defeat. The Prime Minister faces the gravest crisis of his career after seeing the safe Labour seat of Crewe lost to a resurgent Tory party. Yesterday a backbencher said openly that it was time Mr Brown stood down.

Cabinet colleagues are privately urging him to tackle the issue of motoring costs as a way of helping households struggling with rising fuel, energy and food bills. The new car taxes have proved so unpopular that one Labour MP described them as "a poll tax on wheels". [After a tax that led to the downfall of Margaret Thatcher]

Alistair Darling, the Chancellor, is facing more calls to cancel the 2p increase in petrol duty this autumn following a month of record prices at the pump and a recent surge in the price of oil. The Treasury is understood to be considering an about-turn on the plans, which would see hundreds of pounds added to the tax bills of millions of drivers.

On Thursday Mr Brown saw a 7,000 Labour majority in Crewe and Nantwich turned into a majority of just under 8,000 for the Conservatives. David Cameron claimed it was a "remarkable victory" and said the campaign marked the "end of New Labour". If the by-election swing was repeated in the next general election, nine Cabinet ministers including Jacqui Smith, the Home Secretary, and Alistair Darling, the Chancellor, would lose their seats.....

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