13 March 2008
The chancellor's Budget held some mixed messages for the UK's drivers, it has been suggested.
Ashton Berkhauer, insurance expert at uSwitch.com, said that the announcements relating to the postponement of a fuel duty rise and a change in car tax may be "a bitter pill to swallow" for motorists.
In the Budget, Alistair Darling stated that the proposal for a 2p per litre rise in fuel duty would be postponed until October 2008.
Mr Berkhauer called this "good news", explaining that fuel prices are already at an all-time high for both unleaded and diesel.
However, he warned that when the prise rise does come into effect, drivers could find that the cost of filling their car increases to "a wallet-draining £974.71".
Meanwhile, Mr Darling also stated that from 2010, those with the lowest-polluting vehicles will not pay tax in their first year.
Regarding the announcement to change road tax to reward greener vehicles, Mr Berkhauer commented: "Only those drivers opting for the least polluting vehicles, currently representing just 0.2% of all cars on the road, will be incentivised."
© 2008 Adfero Ltd
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