RAC comment on today's Budget and the financial impact for drivers
The RAC has responded to the Chancellor's Budget speech on motoring taxation and roads investment:
RAC head of external affairs Pete Williams: “This Budget for the most part is good news for the nation’s motorists. The Government made a commitment three years ago to ring-fence all the money collected from vehicle tax from 2020/21 to maintain and improve our most important roads. It is good to see the Chancellor delivering on this promise and it is clearly a big step in the right direction.
“While the focus of this cash injection is strategic and major roads it is also positive that other local roads will benefit to some extent - any additional funding to help fix our local road network is welcome. The condition and maintenance of local roads is motorists’ top concern according to research from the RAC Report on Motoring. However, £420m is likely to be a drop in the ocean when compared to the scale of the problems motorists face. Independent analysis suggests the cost to bring our local roads up to an acceptable standard is around £9.3bn. We have been calling on the Chancellor to take the opportunity to use this Budget to commit at least 2p a litre from existing fuel duty revenues as a dedicated fund for local roads improvement. This, together with existing sources of local roads investment, would have raised the required amount to fix our local roads over the next ten years.”
“We welcome the Chancellor’s decision not to increase Insurance Premium Tax. After three rises in the last three years, motorists can breathe a sigh of relief that they will not face a further tax hike on their car insurance costs. However, we would have liked to have seen recognition from the Chancellor about the role that telematics-based insurance policies can play in terms of safer driving, particularly among younger drivers. A cut in the rate of IPT for such policies would have encouraged the take-up and affordability of telematics policies and the proven benefits these offer of safer driving behaviours among young and new drivers – a missed opportunity from the Treasury. “
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About the RAC
The RAC provides complete peace of mind to 12m UK private and business drivers, whatever their motoring needs. Its services include:
- Breakdown assistance. Its highly-skilled, 1,600-strong branded patrol workforce attends more than two million breakdowns every year, fixing on average four out of five vehicles at the roadside. The RAC’s patrol fleet is one of the most advanced in the UK, and was the first to roll out both an All-Wheels-Up recovery system, allowing the vast majority of vehicles to be recovered from a single patrol van, and EV Boost mobile electric vehicle charging units
- Insurance. The RAC is a top-five car insurance broker having surpassed the 500,000 policies-in-force milestone in 2018. It also offers ‘black box’ telematics policies, as well as home and travel insurance
- Other motoring services. The RAC leads in the development of new solutions for business, fleets, electric vehicles and future car technology. Its additional products and services include a personal loans offering, a used car buying website, vehicle inspections and checks, legal services or up-to-the-minute traffic and travel information. It also has a network of Approved Dealers and Approved Garages which combine the trust of RAC brand with local service and convenience
The RAC also works to support the interests of its members and UK drivers on the most important motoring issues which it identifies via the annual RAC Report on Motoring and the RAC Opinion Panel. The Report on Motoring is the longest running analysis of driver opinion in the UK having been published every year since 1989.
For more information about the RAC, visit the RAC website.