Caravan Insurance

Plans to increase the road tax paid on higher carbon band cars will in fact hurt in particular the drivers of family vehicles, a new report has warned.

The Environmental Audit Committee (EAC) suggested earlier this month that increasing tax band differentials to £300 between cars with different carbon emission levels could prove effective in reducing emissions overall.

This would mean drivers of band G vehicles paying road tax of £1,800 a year before long, something the Society of Motor Manufacturers and Traders is critical of, as it claims many family vehicles fall into this category.

Chief executive Christopher Macgowan explained: "Our analysis shows that changes to road tax would hit drivers of small and family cars in a tax double-whammy, firstly through fuel costs and secondly road tax.

"It would add more pain to families struggling with rising energy costs at home and threatens to further dampen consumer spending."

Should the EAC's proposals be implemented by 2009, drivers of the BMW 5 Series and the SEAT Alhambra would see the cost of running their car as having risen by over £2,000 since 2003.

Meanwhile, drivers of Vauxhall Zafiras, Peugeot 307s, Volvo S40s and Honda Accord Tourers would all have seen their car costs more than double over this six year period.