Fleet News

Budget 2008: Chancellor brings 'temporary relief'

The AA has described the Chancellor’s decision to defer the 2p per litre increase in fuel duty until October as “temporary relief”.

Edmund King, AA president, said: “This temporary relief should quell any panic at the pumps.

"The Chancellor has listened to us and made a sensible decision."

The proposed tax increase would have taken fuel prices to new record levels.

"Two pence might not sound like much but, when it is added to the 20 pence per litre increase in pump prices in the last year, it could have been the last straw for many motorists.



The increase in vehicle excise duty to £400 for Band G vehicles will also catch out many motorists, said the AA.

"Drivers want cleaner, greener cars but we must ensure that the proposals in the King Review are not just a green smokescreen for allowing the Treasury or local authorities to take more cash from the motorists."

On the annoucement that road pricing is back on the agenda, Mr King said: “Motorists are being hit with road pricing already due to the record price of fuel - perhaps this road pricing funding would be better spent immediately by getting rid of bottlenecks on motorways and main roads.”


On the review of vehicle excise duty (VED) Mr King said: “Graduated tax according to emissions sends out the right message but we need to examine the detail to ensure that the system is fair.

"Manufacturers and motorists need advance warning of changes and we must remember that some larger vehicles are essential for bigger families.”

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