John Hutton has given the first broad hint of a climbdown over vehicle excise duty amid signs of a growing revolt in the Labour ranks over the issue.

The Business Secretary suggested that the Treasury was receptive to people’s concerns about the issue, suggesting they may be preparing for a climbdown in the coming months.

Mr Hutton told BBC Radio 4 that the Chancellor was “listening to what people are saying about vehicle excise duty”, adding “It's right that we listen to people's concerns.”

He said: "We are trying to get this balance right between encouraging choices to go green but not hammering people."

This came after a ministerial aide joined the growing revolt over the rise in car tax.

Rob Marris, the Labour MP for Wolverhampton South West and a parliamentary private secretary in the Northern Ireland Office, urged Mr Darling to re-think plans announced in the Budget for big increases in vehicle excise duty on “gas guzzling” cars.

Both Labour and Conservatives are increasingly coming under pressure to review and scrap plans for enviornmental taxes as the credit crunch constricts household budgets, making them much more politically unpalletable.

Mr Marris warned that there was “a significant risk” that car tax could cause anger on the scale of the 10p tax rate abolition.

Although vehicles bought before 2001 are exempt, MPs are concerned that the some owners who bought bigger cars in the past not realising the changes were on the way, could be faced with increases of up to £200.

More than 30 Labour backbenchers have now signed a Commons motion urging ministers to re-think the proposals before the new rates come into force.

Mr Marris, a said it was “undesirable” that hikes in VED should be applied to cars as much as seven years old.

He said he was hoping to meet Mr Darling when Parliament returns next week and would urge him to rethink the changes, which were announced in the Budget but will not come into effect until next year’s Finance Bill.

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