Neil Lancefield
A “WARNING shot” has been fired at diesel drivers by the Treasury, the RAC motoring organisation has claimed.
The Government will “continue to explore the appropriate tax treatment for diesel vehicles” as part of its commitment to improving air quality, according to the main Budget document.
It added ministers will “engage with stakeholders ahead of making any tax changes at Autumn Budget 2017”.
Green campaigners have called for a diesel scrappage scheme to give an incentive to owners to give up their motors in favour of greener models to help cut pollution.
Responding to the Government’s statement, RAC chief engineer David Bizley said: “The Chancellor has fired a warning shot at drivers of diesel vehicles, with the suggestion in the Budget document that a new tax regime covering diesel could be announced before the end of the year.
“This uncertainty is bound to be of concern to private and business motorists alike, who will be wanting urgent clarity on just what the Government plan to do.“The RAC will take a leading role in representing motorists when the consultation goes live.”
Mike Hawes, chief executive of the Society of Motor Manufacturers and Traders, said: “The automotive industry is investing significantly in new technology to address the issue of air quality, so we look forward to working with Government to encourage the uptake of the latest, low emission vehicles, regardless of fuel type.
“Nearly one in two new car buyers chose a diesel last year and getting more Euro 6 diesels on the road will be part of the solution as we also strive to meet our climate change targets.”
There are growing demands on the Government to take action on air pollution, much of which comes from traffic fumes, particularly diesel vehicles, and which is responsible for about 40,000 premature deaths a year in the UK.
British Lung Foundation chief executive Dr Penny Woods said: “Diesel is responsible for much of the filthy air we breathe. There is a huge consensus that urgent action needs to be taken to protect the nation’s lung health.“The absence of a clear plan to slash harmful vehicle emissions means concerns over how we deal with this public health crisis continues to grow.”She added: “The Chancellor has missed an opportunity to tackle air pollution immediately.”
The other major news in the Budget that affects drivers was the continuation of the fuel duty freeze for another year.
Instead of the planned 2p-per-litre rise in fuel duty, due to come into force in April, it has been frozen again until April 2018. The planned increase would have put £1.36 on each tank, adding hundreds of pounds a year for drivers.
Fuel duty has been held at 57.95p per litre since the March 2011 Budget, when it was cut by a penny. Dermot Kelleher, director of marketing and business insight at Motors.co.uk, said: “At a time when consumers are feeling the pinch with the rising cost of everyday items and a weakened pound, the continuation of the fuel duty freeze will be welcome news to motorists.
“With duty on petrol and diesel holding steady at 57.95 pence per litre, the Treasury suggests the average driver will save around £130 this year.From an industry standpoint, the fuel tax freeze continues to affect drivers’ buying habits.
“We have found the number of people searching for vehicles by monthly cost, particularly those under £300, has risen substantially in the past 18 months as motorists look to better manage the cost of their purchase.“And, while the tax freeze will keep fuel costs stable, prices at the pumps will still continue to rise and fall in-line with factors like oil prices so drivers should keep this in mind to minimise the impact that variables have on their outgoings.”
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