The changes from Gordon Brown’s Budget are welcomed by the automotive industry but, but still don’t go far enough, says James Kelsey, a member of UHY Hacker Young accountancy group.

In his budget, the Chancellor announced a revamp of car tax rates with gas guzzling vehicles facing a rise and lower emitting models getting a reduction.

"Although there's a road tax reduction for cleaner vehicles, there's still no mention of a reintroduction of cleaner car grants for new car buyers. Consumers need to be given more incentives to make them choose environmentally friendly vehicles.

"Similarly, the Budget has made things more difficult for retailers. What the market needs is a long term, consistent policy so buyers can make informed decisions on the vehicles they purchase.

"By continually tinkering with the vehicle excise and fuel duties, introducing and then scrapping grants, consumers do not know what the cost of running their cars will be. The colour coded scheme, showing new car buyers carbon emissions and costs of running was only introduced last year. The labels will now have to be ripped up and re-written, a time consuming and costly burden hitting retailers in the pocket."

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