RMIF On Pre-Budget Report: Bad For Motorists, Good For Business?

‘The Chancellor has missed an opportunity by failing to twin his Vehicle Excise Duty (VED) evasion clampdown, with a matching attack on car insurance dodging.’ said Alec Murray, chairman of the Retail Motor Industry Federation (RMIF), commenting on the Pre-Budget Report today (Tuesday 9 October 2007).

There are 27 million drivers on Britain’s roads, and it is estimated that one in ten are currently uninsured.

‘The insurance premiums paid by law-abiding motorists are kept high in order to pay for the 2.7 million who shirk their responsibilities as road users. VED and car insurance evasion go hand in hand, so the Chancellor had an opportunity to allow motorists to have more money in their pocket at the end of the year, and reduce the misery that results from crashes involving uninsured vehicles,’ added Murray.

In the Pre Budget Report, Chancellor of the Exchequer Alistair Darling also revealed strategies intended to help businesses.  He said that the main rate of corporation tax would be reduced from 30 per cent 28 per cent. He also plans to simplify the tax system relating to self-employed staff.

Murray observed: ‘Through these plans, the Chancellor seems to be helping businesses by reducing costs and red tape. Let’s hope he follows through.’