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Budget 2012: the car industry’s response

Following the news that the motorist will get hammered a little more by George Osborne, most of the major motoring groups and publicity-seeking companies have had their say.We all knew what was coming in the 2012 budget, really, but that hasn’t stopped the outpouring of indignation. That said, some groups have reacted positively. Here are some of the comments:
The Association of Car Fleet Operators
ACFO is disappointed that the Chancellor has decided to press ahead with the August 3.02p per litre rise in fuel duty. [But] we welcome the Chancellor’s decision to remove the 3% diesel supplement on benefit-in-kind tax from April 2016, which is something that ACFO has been campaigning for many years.
GEM Motoring Assist (road safety group)
As the high duty on petrol continues to affect struggling families and businesses across the country, GEM is encouraging motorists to find other ways to save on fuel in these tough times. With easy-to-make changes, such as reducing average speed, regularly checking tyre pressure, and removing unnecessary weight in and on your car, the organisation believes fuel bills could be significantly reduced.
Motorpoint (Car supermarket)
Motorpoint is disappointed that the Chancellor has announced that there will be no change to the planned rise in fuel duty, meaning there will be a 3p per litre price rise from 1 August.
Freight Transport Association
The Chancellor has squandered a very real opportunity to support UK industry, jobs and economic recovery, by his Budget policy on fuel duty. Independent research has shown that a cut in diesel duty of 2.5p per litre would have created an additional 175,000 jobs with no loss of revenue to the Exchequer. But, by contrast, the fuel duty increase of 3p per litre scheduled for August will increase the average cost of lorry operation by around £1,200 per vehicle per year.
BVRLA (car leasing trade body)
The Chancellor has missed an open goal by deciding not to cut fuel duty. We will see public outrage at fuel prices continue to rise ahead of the scheduled August duty increase.
Society of Motor Manufacturers and Traders (SMMT)
Today’s Budget recognised the significance and importance of a rebalanced, export-led economy, by taking steps to encourage international investment in R&D and manufacturing in the UK through considered taxation reforms and incentive programmes. The Chancellor’s actions to improve R&D tax credits and develop a catapult for transport systems and future cities will help trigger substantial extra business investment in the years ahead.
ATS Euromaster
The country cannot get back on its feet if the cost of fuel is continually dragging businesses and motorists back down. Any glimmer of hope that the Chancellor of the Exchequer, George Osborne, would offer British businesses and motorists relief from the soaring cost of petrol and diesel – which earlier this month hit record UK highs – was quashed during today’s Budget.


