Budget 2007 - Chancellor Continues To Take Says RMIF

The Retail Motor Industry Federation (RMIF) comments on today’s budget:

Chancellor Squeezes Motorist, But Fails To Invest In Transport
‘The Chancellor has attacked the motorist with the increase in Vehicle Excise Duty (VED) for 4x4s and other large vehicles, but has failed to offset this by any extra investment in transport. There are more effective ways to influence the buying habits of motorists than the “blunt instrument” approach of a road tax increase. Instead of punishing motorists for choosing what is available, the Government should be doing much more to encourage vehicle manufacturers to develop hybrid vehicles. Consumers need to be given a proper choice, and manufacturers and vehicle dealers need to be able to give it to them.’

‘The Chancellor is using road tax as a weapon against motorists, and it will be those who really need 4x4s for their daily lives that suffer most.  Families, rural dwellers, farmers, and business users are less able to absorb this further increase, as they are already paying extra to use their vehicles through fuel duty, company car tax, and other measures.’

Sue Robinson
Director of the RMI National Franchised Dealers Association (NFDA)

Fuel Duty Increase- Motorist Pays Price For Chancellor's Generosity
‘The two pence per litre increase in fuel duty scheduled for October 2007 is a revenue-raising exercise with no benefit for the motorist, who will be paying for other Government programmes. In fact, it will be the motorist who pays for the Chancellor’s apparent generosity.’
 
Ray Holloway
Director of the RMI Petrol Retailers Association

Biofuels - Missed Opportunity
‘The Chancellor has ignored the opportunity to generate market demand for biofuel.  He seems to expect industry and the consumer to do all the work to get biofuel going, without the much-needed tax inducements or Government support.

‘The current system does not benefit the motorist at all. Biofuel is limited to five per cent per litre, which works out at one pence per litre. This is offset by bio-production costs. The Chancellor says the motorist is saving 20 pence, but in reality it is one pence.

‘The Chancellor has missed a real opportunity to encourage motorists to choose cleaner vehicles. Indeed, the Chancellor’s already-announced proposal to change the MOT test intervals will negate any positive effect of the measures. If this proposal is adopted, emissions control on the older vehicles which make up the majority of the car parc will be lost. As a result any carbon savings will be rendered moot.’

Ray Holloway
Director of the RMI Petrol Retailers Association

Corporation Tax - Chancellor Gives With One Hand, Takes With The Other
‘The decrease in the higher rate Corporation Tax is a good incentive for larger businesses, and should have major benefits. They will be able to keep hold of more of their profits, which can be reinvested. After many years of increasing taxation on business, this is a welcome relief.

‘However the increase in the Small Business Rate is going to be a blow for smaller businesses who have felt the impact of increasing tax and red tape more so than larger businesses.’

Sue Robinson
Director of the RMI National Franchised Dealers Association (NFDA)

22 March 2007 Staff

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