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Motor industry responses to George Osborne's Autumn Statement

Motor industry and associated bodies have responded to the news of yesterday's Autumn Statement, including its plans to drop the VED disc.

The RMI welcomed Chancellor George Osborne's extension of the small business rate relief scheme and the announcement that rates will be capped at 2% next year.

“The new option to pay in monthly instalments will be of great benefit to our smaller members, said NFDA director Sue Robinson. 

The RMI also backed the proposals for apprenticeship reform and the move to remove employer national insurance contributions for staff under 21. “The exemption will encourage the smallest of our members to hire young people and expand their businesses,” said Robinson. 

BVRLA welcomed the government's Autumn Statement, praising the Chancellor's decision to abolish the paper tax disc in particular.

"It is great that the Red Tape Challenge we participated in is continuing to bring results," said BVRLA chief executive, Gerry Keaney.

"We estimate that removing this pointless piece of paper would save the government around £3m a year, and save fleet operators £10m as well."

Since the DVLA closed down regional offices, the process for getting a tax disc had become quite difficult. Motorists and businesses were waiting weeks for the paper tax disc to arrive in the post - but now this process can be completed online.

The BVRLA also welcomed the confirmation of the fuel duty freeze that had been announced in March's Budget. This will save businesses and fleets an extra 3p per litre on petrol and diesel.

Philip Gomm, Head of External Communications of the RAC Foundation, said: "Drivers will be grateful for the confirmation of  the (fuel duty) freeze trailed by Mr Osborne in his party conference speech. However, as shown by Fuel for Thought, written for the RAC Foundation by the IFS, motoring taxation accounts for about 7% of all the tax income the Chancellor receives and 60% of the pump price is still tax."

 



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