by Stephen LewisCHANCELLOR Gordon Brown is considering a proposal by a North East Labour MP that would mean drivers in city areas paying more road tax than their country cousins.

Derek Foster, the Bishop Auckland MP, who is thought to have the ear of both Mr Brown and Prime minister, Tony Blair, says the move could help offset the impact of expected steep rises in petrol duty in next week's budget.

Mr Foster said his proposals, which would operate using post-codes, did not call for road tax to be scrapped altogether in rural areas - but could mean country folk paying significantly less than town and city dwellers.

Mr Foster, a friend of Mr Brown, told the Evening Press today: "I think he will take it seriously. That doesn't mean he will do it."

Mr Brown is expected to unveil sweeping changes on transport duties in the budget, including hefty increases in petrol tax - up by as much as 20p a gallon, Mr Foster believes - increases in road tax, road tolls and even possibly a tax on parking at work.

It is part of a drive to force motorists away from cars and onto public transport.

But the rural lobby has warned that with public transport scarce in the country and petrol already more expensive there, further increases in petrol prices could unfairly penalise those living in remote areas.

Ryedale MP, John Greenway, said today any concessions that helped those living in rural areas where there was little public transport were to be welcomed.

But he said he was sceptical about whether the proposed differential would work. "I would have serious concerns as to how you would implement it.

"How do you define where people live? Would the areas between York and Malton be rural? It is a substantial problem."

York MP Hugh Bayley said today he did not want to speculate on what may or may not be in the budget.

But he said it was 'quite absurd' that road duties were so low compared to duties paid for rail travel and that the balance needed to be addressed to encourage more rail users.

The Treasury today refused to confirm or deny the plan.

l Transport chiefs in York today invited local people to have their say on the future shape of the city's roads.

Elderly and disabled people, motorists and public transport pressure groups were among those speaking out at today's Local Transport Day at the Guildhall.

It is the start of a consultation process by City of York Council, which is already working on next year's bid for Government cash to pay for green transport schemes.

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