Fleet News

Budget 2008: RAC reaction to budget

The RAC Foundation has welcomed the decision to delay the 2p fuel duty increase as the only bright spot in the budget.

Sheila Rainger, acting director of the Foundation, said: "This sensible decision is the only bright spot in a budget seemingly doing nothing positive for the motorist.

"But postponing the increase only delays the misery for British motorists struggling to make ends meet.

"The Chancellor should look again at the idea of a fuel duty stabiliser to protect British motorists from the shocks of the global oil market."

The cost of fuel has risen 20% in the last 12 months .

The Foundation said it is disappointed there is no provision for additional spending on improving the UK's road network.

On the subject of new tax rates for new cars, Ms Raigner said: "Graduated VED has helped consumers choose the most efficient car to meet their needs.

"As long as new bands inform and do not confuse the customer they will be welcome."

Commenting on the first year tax changes, which will make higher polluting cars mmore expensive to tax in their first year after registration, Ms Rainger said: "Measures that make people think carefully about choosing a vehicle that matches their needs are always welcome.

"However, we believe incentives for choosing a more efficient car are more likely to win the public over than swingeing taxes.

"The Government should monitor the effectiveness of this tax and be prepared to drop it if it is not working."

 

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