RAC s response to the Budget

Article date: 21 March 2007

RAC agrees that more measures are needed to promote greenermotoring in future. However, we believe that these measures shouldfocus on encouraging greener driving through positive incentives,rather than penalties.

We are disappointed that there will be a further increase in fueltax as well as an additional cost for some motorists, which won'tjust affect owners of 4x4s and high performance cars. The higherrate of tax will also capture some MPVs which are the only viablefamily car for larger families, as well affect those living inrural areas, for whom 4x4s are not a luxury but a necessity.

"Government should further incentivise responsible use of vehiclesrather than discourage vehicle ownership. UK motorists already payin excess of £40 billion of motoring taxation and we believe thereshould be a review of the motoring taxation system to make itfairer. RAC would like to see:

  • Further reductions in road tax for the cleanest cars
  • Use of the taxation system to incentivise the replacement ofolder fuel-inefficient vehicles
  • Measures to encourage more fuel efficient driving.


RAC Press office contact:
Liz Kennett on 01603688263 / 07800 699667

Notes to editors:

About RAC
With around seven million members, RAC isone of the UK's most progressive motoring organizations, providingservices for both private and business motorists. Whether it'sroadside assistance, windscreen repair and replacement, learning todrive, vehicle inspections and checks, legal and financial servicesor up-to-the-minute traffic and travel information - RAC is able tomeet motorists' needs. RAC incorporates BSM, RAC Auto Windscreens,RAC Direct Insurance and HPI.

Aviva bought RAC in May 2005. The acquisition brings together RAC'spowerful brand and customer base with the expertise and leadingposition in motor insurance of Norwich Union Insurance (part ofAviva). Norwich Union is the UK's largest insurer, insuring one inseven motor vehicles and with a market share of around 15%.

RAC's news releases and a selection of images are available fromthe internet press centre at www.racnews.co.uk.

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