Motoring groups give 2013 Budget a mixed reaction

GROUPS representing the nation's motorists have shared their thoughts on what this year's Budget could mean for your automotive wallet.

Chancellor George Osborne revealed a number of measures which will affect the cost of owning and running a car, including a proposed freeze in fuel duty rises later this year, which have met with a mixed reaction from motoring organisations.

The fuel duty freeze got a particularly warm welcome, with Professor Stephen Glaister, the director of the RAC Foundation, saying: “This news provides breathing space for families being smothered by the soaring costs of motoring, especially the 800,000 households spending more than a quarter of their income on operating a vehicle.

"Through this move, the chancellor will lose about £1bn a year in duty and VAT income, but tens of thousands of people will be saved from being forced to give up their cars against a backdrop of generally rising running costs.

"Freezing fuel duty does nothing to help the millions who rely on public transport. Bus services are seeing year-on-year cuts and government is still committed to above-inflation rail fares rises."

The chancellor, George Osborne, said: "We inherited a fuel duty escalator that would have seen above inflation increases in every year of this Parliament. We abolished the escalator and now we’ve now frozen fuel duty for two years. This has not been easy. The Government has foregone £6billion in revenues to date."

However, AA president Edmund King described the move as "relief, rather than joy" for drivers, while other transport groups were less supportive of the measures.

Stephen Joseph, chief executive of the Campaign for Better Transport, said: "Freezing fuel duty does nothing to help the millions who rely on public transport.

"Bus services are seeing year-on-year cuts and government is still committed to above-inflation rail fares rises."

Nissan, meanwhile, publicly expressed delight that Benefit in Kind (BIK) tax levels - such as its LEAF model - will now be set at 5%, rather than 13% as previously.

A spokesperson for the firm said: "The Budget announcement means that by keeping BIK rates for company EV drivers at the lowest rate, more will look to choose an EV like the LEAF as their next company car.

"This should increase EV sales, at the same time as helping bring down emission levels which is a priority both for companies meeting their corporate CSR objectives and for cities such as London to meet future EU emission targets."

Do you think the 2013 Budget has helped or hindered motorists? Share your thoughts by leaving a comment below...

Budget 2012: How motoring groups reacted

THE price of petrol will go up by around three pence a litre later this summer, motoring groups have warned this week after Chancellor George Osborne announced his Budget.

Among the changes the Conservative/Lib Dem Coalition announced this week were changes to car fuel benefit charges, a revision of how car company tax operates, and the announcement that the price of fuel will go up by around three pence in August.

Here's how a wide variety of motoring groups reacted to the announcements in the Commons:

"A free-flowing national network cannot be built without proper road charging. If the Prime Minister's advisors have not told him this simple fact he needs to replace them with people who understand the problem.
"A true leader will explain to motorists that we cannot expect a first-class strategic road network without paying for it."
- Environmental Transport Association

"The Chancellor has squandered a very real opportunity to support UK industry, jobs and economic recovery, by his Budget policy on fuel duty.
"Mr Osborne has lost an opportunity to benefit every household in the UK and he must be persuaded to change his policy."
- Freight Transport Association

“Future changes in company car tax rates and capital allowances will drive fleet managers and drivers into lower emission cars at a faster rate.
"We are, however, disappointed that the Chancellor has decided to press ahead with the August 1, 2012 3.02p per litre rise in fuel duty."
- The Association of Car Fleet Operators

“The Chancellor’s actions to improve research and development tax credits and develop a catapult for transport systems and future cities will help trigger substantial extra business investment in the years ahead."
"The UK automotive industry is attracting major levels of investment and creating real opportunities for engineering and manufacturing businesses."
- Society of Motor Manufacturers and Traders

"At a time of record prices at the pumps the August increase in duty is a budget blow-out which will force drivers off the road and could bring a summer of discontent for many."
- AA

"George Osborne said that taxes should be fair, simple, predictable and support work. Motoring tax fails on at least three of these measures and it is time for a review of exactly what fuel duty is for and who it impacts most." - The RAC Foundation

Do you think the 2012 Budget has helped or hindered motorists? Share your thoughts by sending an email to david.simister@champnews.com or call 01704 392404.