Motor tax could replace controversial width and emissions proposals

In yet another twist to the ever-changing transport strategy, Treasury and Resources will attempt to delay this month's debate on proposed, and amended, legislation for the introduction of a First Registration Duty.

If successful, the sursis will force Environment back to the drawing board - requiring it to come up with proposals for the reintroduction of an annual motor tax as an alternative to the width and emission charge.

Any new motor tax would be accompanied by a reduction in fuel duty.

The move is being made as Treasury looks to secure a sustainable income stream for the implementation strategy.

It also follows the department's recommendation not to introduce a tax on employer provided parking spaces.

Minister Gavin St Pier said his department had a responsibility to ensure adequate funding was in place.

'Last year, the States adopted as a matter of policy a road transport strategy that will require expenditure of some £4m. per annum on a wide variety of alternative transport, road safety and traffic management initiatives.

'A key element of that strategy was the generation of additional income to offset this expenditure, but the Environment Department's move to amend its proposed First Registration Duty will result in a substantial funding gap of around £1.6m. per annum.

'Treasury's mandate is to advise the States on the resource implications of the policies it pursues.

'Unless the States resolves – which it has not yet done - to make substantive change to the strategy it has adopted, Treasury has a responsibility to bring forward options to close that gap, which will only be exacerbated with the delay to the introduction of paid parking.'