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Motoring news

Budget a 'mixed blessing' for motorists

23/06/2010

Transport lobby groups have responded to yesterday's emergency Budget with mixed emotions.

According to the AA, the chancellor has brought "short-term relief at the pumps" - though this is to be tempered by longer-term price rises resulting from the scheduled 1p fuel duty increase in October, and the 0.76p increase in January.

Meanwhile, the VAT increase to 20% from 4 January next year will also impact upon fuel prices.

Prices have fallen in recent weeks to a current average of 118.2p per litre for unleaded petrol - down from a record high of 121.6p last month. However, the AA says that the impact of the duty and VAT rises will set new highs.

The Budget was welcomed by the motor industry itself, with the Society of Motor Manufacturers and Traders (SMMT) - which has been calling for the Government to promote stability in the sector - hailing its measures as providing "long-term clarity".

Although acknowledging the "painful measures for individuals and businesses", chief executive Paul Everitt said that the industry hoped the accompanying certainty would provide "financial stability, confidence and growth".

And while the Campaign for Better Transport (CBT) praised the Government for giving the green light to improvements in public transport for Sheffield and Manchester, it warned that the coming spending review, due to be concluded in the autumn, is set to see many of the "hard choices" played out.

Meanwhile, road safety charity Brake has warned that the likely picture painted by the chancellor - of an average cut in spending of 25% across most Government departments over four years - could hit road safety funding particularly hard.

The charity says the Department for Transport has told it that cuts in road safety grants will not necessarily affect council spending in the area, and that local authorities will be free to prioritise their spending between different areas. However, Brake fears that councils will simply not pay out for road safety projects without specific funding.

Campaigns officer Ellen Booth said: "Brake is outraged that road safety has been targeted so brutally."

"[By doing so] the Government has shown they have no concern for the families of the future carnage we may see because of this irresponsible and short-sighted cut of a vital life-saving service, and also no understanding of the enormous expense to the emergency services of road crashes and therefore the false economy of making these cuts."

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