Following a recent call from the government to retailers and petrol companies throughout the UK, requesting they immediately pass the reduced fuel prices to the general public, the AA claim that any savings the motoring public may make from recently reduced fuel prices is immediately offset through the government price increase via their possible introduction of fuel duty charges.
Amongst growing speculation that the Chancellor maybe considering the announcement of increased fuel duty at the next budget, the president of the AA wrote to Angela Eagle MP, the Treasury Exchequer Secretary demanding immediate action to help motorists. The correspondence outlined various points including:
The increased costs of motoring
77% of AA members have had to economize their fuel consumption and usage of their motor vehicles as a direct impact of the high fuel prices. The AA felt that both businesses and families, particularly at the moment, required stability in fuel prices. In doing so, the AA directly requested a continued fuel duty freeze to help stimulate spending in other areas of the icy economy.
If indeed the Government eventually decides to implement a fuel duty at some stage the AA stated that the UK motorist will want to see their money being invested in the prevention of congestion and increased road maintenance.
Proposed Vehicle Excise Duty changes
The AA stated their grave concern for the proposed Vehicle Excise Duty, (VED) changes. The impact of these large changes may affect many who are least able to afford it. For instance, within certain areas it may unfairly affect those ethnic minorities who have extended families, however, use their vehicle very efficiently. The AA calls for changes to be made to this proposal.
Scrapping vehicles scheme
Due to car sales dropping by 21% last month, the AA also requested that the Government implement a cash incentive scheme encouraging motorists to replace (more regularly) their old car with a new one, thus giving the new car sales market a boost and reducing vehicle emissions in the UK.
Under the current VED scheme there is only an incentive in place for motorists to keep a pre- 2001 car, which is particularly beneficial for those motorists who require a bigger and more powerful engine. There are only two VED ratings for pre 2001 cars and they fall into; owning a vehicle with an engine that is below 1,549cc and owning a vehicle with a more powerful engine than 1,549cc. However, the AA points out that these tend to be the very vehicles that are the major contributor to pollution and therefore, in their view are less safe and roadworthy.