The AA described the “motoring-lite budget as bringing
pump relief but with missed opportunities to help remove the
burden on young drivers.”
IPT
Edmund King OBE, AA president, said:
“The AA is pleased that the Chancellor has not increased IPT in
this budget. However, motorists will need to brace themselves for
the previously announced rise to 12% from 1 June, completing a
100% increase within two years. This is unprecedented in modern
tax history but we are glad the Chancellor has put a stop further
increases. We are though disappointed that there is no reduction
in IPT for young drivers who are being priced out of their cars.
“Generally this motoring-lite budget brings pump relief but with
missed opportunities to help remove the burden on young
drivers.”
AA is disappointed that the call from the AA and others to
suspend IPT for young drivers using telematics policies was
ignored. This would have made insurance more affordable for
the most responsible young drivers who are happy to have their
driving monitored – thus reducing the likelihood of being
involved in a collision or being charged for motoring offences.
Fuel Duty
We are glad that the Chancellor has kept the freeze on fuel duty.
Since mid-February last year, the price of petrol has gone up by
more than 18 pence per litre. As well as driving the bulk of UK
business, the cost of motor fuel remains a significant part of a
driver’s weekly spend. A year ago, a family with two petrol cars
was spending £203.90 a month petrol. Now it is more than £240.
The freeze in fuel duty will help keep the pump price in check as
the negotiations to leave the EU continue.
VED
Failure to review imminent changes in car tax means that, from 1
April onwards, there will be no VED incentive to buy a brand new
lower CO2-emitting car. Anyone who buys a new car that produces
less than 100 g/km but more than 0 g/km will pay the standard
£140 to tax the vehicle, instead of £0 under the current rules.
Meanwhile a 131-140 g/km car will now pay £140 as opposed to the
current £130. Taxing a gas guzzler, worth less than £40,000, will
also cost £140 - £375 less than now.
We can forget about influencing car-buying behaviour, car tax is
what it says on the form – tax, and more tax for potentially 40%
of future new cars (40% of currently owned cars that emit at
least 1g/km of CO2 cost £130 or less to tax).
Road building and urban congestion
Edmund King OBE, AA president: said: “The AA is pleased to see
the Government is continuing with its investment in road building
and easing congestion. We know from Department for Transport
statistics that, if there is traffic on the road you need, on
average, an extra 41 minutes to make a one-hour journey. The £90m
for roads in the North and £23m for roads in the Midlands are
welcome but ‘small beer’. The £690m urban congestion competition
should also help. The Government needs to work faster in tackling
congestion without compromising safety.”
October 2016 more than a third (35%) said their local roads were
in poor condition. In October 2015 only a quarter (25%) said
their local roads were in poor condition. As well as more
funding, local authorities need to do their bit in accessing if a
road is beyond patching and should be resurfaced to avoid
repairing the same potholes time and again.
Technology
Technological investment for driverless cars is a step in the
right direction.
