Further duty 'could exacerbate debt'

17 July 2008

If vehicle excise duty is altered then already struggling motorists could find that they get into further debt, according to one company, comments that may also be of interest to those with car insurance. Gregory Pennington, the debt management firm, said that while the government's efforts to improve the environment should be commended, this is not the best way to help people in the pocket. A spokesperson at the organisation remarked that a number of factors have had a negative impact on people recently, such as the credit crunch, housing market turmoil and the growing price of fuel. "Many families would love to save on petrol and insurance by switching to a smaller vehicle, but for space reasons that's simply not an option, as anyone with three children (and two prams) could tell you," he commented. Chancellor Alistair Darling this week backtracked on plans to introduce a 2p rise in fuel duty in the Autumn.

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