12 March 2010
Motor industry calls on Chancellor for encouragement
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The motor industry has called on Chancellor of the Exchequer Alistair Darling to introduce measures in the 2010 Budget on Wednesday, March 24 that will ‘encourage industry and boost consumer confidence’ if the economic recovery is to be sustained and strengthened.
The Budget will be the last by the Labour Government before this year’s general election, which must be held before the end of June with May 6 viewed by pundits as the most likely date.
Budget announcements called for by the Society of Motor Manufacturers and Traders include:
•Increasing the Annual Investment Allowance for businesses to £500,000 to boost spending on vans, trucks, construction equipment, buses and coaches
•Retaining and further enhancing the first-year writing-down allowance to 60% to incentivise business and fleet investment in the van and truck markets
•Removing or delaying the planned April 1 introduction of a first year rate of Vehicle Excise Duty
•Removing the 3% diesel car penalty in the company car benefit-in-kind calculation
•Deferring the third stage of increases to DVLA first vehicle registration fees
•Removing the £80,000 cap on company cars that adversely impacts UK-built premium car makers
•Delivering clarity and consistency across all vehicle tax and incentive programmes, in supporting the delivery of ultra-low carbon vehicles
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08 March 2010
Rumoured VAT rise could damage new vehicle sales
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Car chiefs fear a rumoured VAT rise later this year could further damage new vehicle sales just as the scrappage scheme comes to an end.
With the Government’s scrappage incentive scheme due to expire at the end of this month UK car companies are predicting new vehicle sales to fall by as much as 10% this year to between 1.7 and 1.8 million.
As well as the end of scrappage there are other issues which could come into play such as the new first year Vehicle Excise Duty rate on April 1, the possibility of a new government following this year’s general election and the rumoured hike in VAT from 17.5% to 20%.
A rise in VAT was the biggest concern with bosses at this week’s Geneva Motor Show, who said such a move could be ‘disastrous’ for business. New showroom-based VED taxes will hit high emission vehicles hardest but additional VAT will hit all big ticket items.
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Drivers compromise safety when replacing tyres
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Drivers have been warned that they could be compromising their own safety if they replace run-flat tyres fitted to their vehicle with standard tyres that do not include run-flat technology.
With many motorists looking to reduce their vehicle maintenance costs, some have been tempted to economise by selecting tyres which do not incorporate the added technology and features found in run-flat tyres, says TyreSafe, the UK’s leading tyre safety group.
By choosing these standard tyres, drivers risk significantly changing the handling characteristics of the vehicle which could increase their chances of being involved in an accident.
“When replacing run-flat tyres, it’s very important that driver’s consult with the vehicle manufacturer if they are thinking about using non run-flat tyres,” said TyreSafe chairman Stuart Jackson. “As a general rule, we would always recommend that driver’s only replace run-flat tyres with a similar product. Run-flats have much stiffer sidewalls than those in traditional tyres and this is taken into account by vehicle manufacturers when they design their suspension and steering systems.”
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26 February 2010
£230 million ultra-low carbon car incentive programme
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Britain is set for an automotive revolution with the Government launching a £230 million ultra-low carbon car incentive programme.
The ‘Plug-in Car Grant’ is expected to reduce car prices by providing 25% towards the cost of a new model, capped at £5,000, and will be open to both private and business fleet buyers.
From January 2011 - a range of eligible electric, plug-in hybrid or hydrogen fuel cell vehicles that pass performance criteria to ensure safety, range, and ultra-low tailpipe emissions and warranty standards set by the Office for Low Emissions Vehicles (OLEV) in consultation with industry are expected to be available.
To support the programme, the Government is also pumping £30m into the funding of a network of electric vehicle hubs - called Plugged-In Places - which will see charging infrastructure appearing in car parks, major supermarkets, leisure and retail centres, as well as on the street. The first Plugged-In Places are London, Milton Keynes and the North East; and between them they will be installing over 11,000 vehicle recharging points during the next three years.
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