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180 – Government fears upsetting transport lobbies

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27 April 2009

Here’s another Budget blog from James Salkeld of business car tax specialist Toomey Opticar. It seems the Budget this year has certainly created lots of discussion.

James Salkeld blogs: The Budget’s motoring content is signalling government fear of upsetting transport lobbies.

If Labour cannot image how to improve car tax revenues fairly and continue to reduce driven emissions it has to be because it is terrified of upsetting transport lobbies.

For private car drivers there is very little of substance in this Budget (2p rise in fuel duty and coming VED changes). And certainly nothing to change behaviour or reduce driven emissions. The widely anticipated old car scrappage scheme turns out to be so weak it is barely visible.

Even if owners of old bangers can be convinced to change buying habits and trade up to new cars the government’s allocated money will run out before most buyers get loans approved.

There are no surprises either for company car drivers – except for bosses running top flight exotic models – as they are already used to the emissions based regime.

With tax revenue from company cars at its lowest for decades, there should be new measures to help fill the expanding black hole in the public purse. It is as if the government is so paralysed by fear of losing office that it can no longer manage our resources effectively.

The most logical measure to reduce emissions, as ably demonstrated by high fuel prices last year, is to move the burden of taxation from increasing standing charges (Road Tax) to the point of use – fuel.

If you drive fewer miles or drive more efficiently you’ll pay less tax. Commercial vehicle drivers who really feel the pinch could apply for some kind of business relief. But at least the rest of us would be paying for what we use, not for what we park in our drives.

James Salkeld, chairman, Toomey Opticar Response from business car tax specialist Toomey Opticar

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Ralph Morton

Ralph Morton

Ralph Morton is an award-winning journalist and the founder of Business Car Manager (now renamed Business Motoring). Ralph writes extensively about the car and van leasing industry as well as wider fleet and company car issues. A former editor of What Car?, Ralph is a vastly experienced writer and editor and has been writing about the automotive sector for over 35 years.

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