Electronic tax

Car tax cut needed to stop ‘alienating’ drivers, says Carwow

According to Carwow, a car tax “holiday” is part of the measures needed to support motorists through the cost of living crisis.

With a new Prime Minister due to be named in September, Hugo Griffiths, editor of Carwow, urges Tory leadership candidates to recognize how vital cars are for people across the country and to stop to develop transport policies that do not reflect how people in the UK really live.

He said: ‘The next Prime Minister must bear in mind that 36 million people hold driving licenses and 78% of households have at least one car.

“‘Motorist’ is therefore effectively synonymous with ‘voter’, and for too long voters have felt guilty for using their cars when public transport was either exorbitant or simply non-existent.”

In March, the government introduced a reduction in fuel taxes, but market volatility meant that many motorists felt little impact. Fuel prices have since skyrocketed and now stand at around £2 a litre.

It is believed that more than a third of motorists would ditch their cars in favor of public transport if fuel prices continue to rise above their current average of over £100 for a tank of petrol.

Griffiths thinks giving drivers a 12-month holiday from paying vehicle excise duty would be a more direct saving, and one that could be means-tested, so those who pay the extra tax road charges of £355 on ‘luxury cars’ are not eligible for the reduction.

He said: “Failure to properly deal with soaring fuel prices and the impending ban on new internal combustion engine cars only serves to alienate drivers from those who are elected to govern us.

“Reducing VAT on electric cars costing less than £40,000 is something that could be considered, while public discussions about how we will replace the £28 billion in fuel tax that petrol cars and diesel report every year must also start in earnest.”

A number of candidates have already pledged to help drive up auto costs if elected to lead. Before stepping down, Sajid Javid promised to cut fuel tax by 10 pence and Penny Mordaunt pledged to cut VAT on fuel by 50%.

Referring to the government’s Net Zero strategy, which has been expanded to include a ban on the sale of new petrol motorbikes and mopeds, Griffiths added: “The government’s lofty ambitions, such as that half of all urban commuting is expected to be done on foot or by bicycle by 2030. , looks little like a rainy Wednesday afternoon in November when parents attempt to ferry primary school children across the the city.

“Drivers are also understandably concerned about the affordability of electric vehicles as we move closer to 2030 and 2035. Rather than reducing incentives, as was done recently with the liquidation of the 1 £500, the next Prime Minister should look to Germany. , where a combination of government and manufacturer incentives contribute up to €9,000 towards the cost of a new electric car.