Industry News from Yes Insurance

The cost of motoring is set to rise as a result of higher vehicle excise duty, car insurance customers have been told.

Nick Herbert, shadow justice secretary, told BBC Radio 4's Any Questions? that the hike in duty is "stealth taxes dressed up as green taxes".

He claimed eight in ten motorists - around 12.5 million people - who bought their vehicle in the last seven years will be paying more as a result of the change.

Mr Herbert argued that car insurance customers and other drivers will shell out "billions" as a result of the increase in taxes, but that CO2 emissions will be cut by less than one per cent as a result.

"So the effect on the environment will be very low indeed," he added.

Speaking on BBC Radio 4's Today programme, shadow environment secretary Peter Ainsworth said that people will be put off the green agenda by "dressing up stealth taxes … as green".

Last week, prime minister Gordon Brown said the changes to vehicle excise duty and fuel prices were needed for "economic stability, the need to fund public services and the need to promote energy efficiency".