| Cost of motoring | Budget 2008 |
Alistair Darling's first budget had few rays of sunshine for car drivers. The only real benefit for motorists is that a proposed 2p increase in fuel duty, which was forecast for April this year, has now been postponed until October. However, there will be a further fuel duty increase of 0.5p per litre in 2010.
More bad news for new car buyers came with the announcement of a 'showroom tax' that will add as much as £950 to the cost of buying a car that emits more than 225g/km of carbon dioxide. New cars with emissions of less than 130g/km will not pay any road tax in their first year.
The 'showroom' tax is part of the changes to road tax (Vehicle Excise Duty) that will introduce a sliding scale of charges in 2009.
The RAC has condemned the budget and says 'it does nothing positive for the motorist.' The Society of Motor Manufacturers and Traders adds that the new tax distorts the market by forcing buyers to choose a small, low emissions car instead of encouraging them to pick models with class-leading emissions.
Alisdair Suttie - 14 Mar 2008