Motorists will 'lose out' under tax reforms

11 July 2008

Plans by the government to reform road tax will mean some motorists will lose out, one expert has said. According to Ashton Berkhauer, insurance expert at uSwitch.com, 12% of drivers will be forced to pay £25 extra a year to tax their vehicle under the proposals. And this will add to the increasing cost of car insurance and the soaring price of petrol, he remarked. "Motorists are being forced to think carefully about when, where or even if they use their cars. For some there are other options such as public transport, but for many there is no other choice," he warned. Mr Berkhauer stated that "rural communities, the elderly, the disabled and lower income families will really suffer" as a result of tax price hikes. Yesterday, Churchill Car Insurance said drivers in East Anglia and the south are most likely to make a claim to their insurer for windscreen damage.

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