“The race is on to get working on UK roads before winter sets in. We hope councils will be able to treat roads before they get dangerously tricky.
On Insurance Premium Tax;
The AA has greeted the Chancellor’s decision to leave Insurance Premium Tax untouched. However, Edmund King, AA President, feels that an opportunity has been missed in the Chancellor’s statement.
“Of course I’m very relieved that the Chancellor has not piled more misery on to drivers and home owners by increasing IPT, which has already doubled over the past two years (from 6% to 12%).
“IPT affects young drivers most and it is a pity that the Chancellor did not take the opportunity to cut this insidious tax for young new drivers who choose to insure their first car with telematics or ‘black box’ cover. On the contrary, because of the high cost of a new driver’s first insurance policy, many already attempt to drive without insurance or try to obtain fraudulent cover through illegal ‘fronting’ (getting a parent to insure their car for them, adding them as a ‘named’ occasional driver when in reality they are the main driver).
“Insurers see the number of crashes involving young drivers dropping by up to a third among those who choose telematics insurance. A tax incentive, such as cutting IPT for say, the first two years, would encourage more to use telematics insurance which in turn, would help cut the number of tragic crashes involving young drivers.
“I would urge the Chancellor to consider this easy win for road safety in his next Budget.”
On electric cars;
“The Government has missed a trick to get fossil fuelled cars off the road as quickly as possible. It is ridiculous that company car tax for electric cars goes up to 16% in 19/20 before coming down to 2% the following year. The Chancellor could have brought forward this proposal like he had with the personal tax allowance.
“Over a million cars have been registered to fleets and businesses this year. In the drive to tackle air quality, company car drivers need to be given incentives to choose the most environmentally friendly vehicle now, rather than defer their option for a year.”
On additional air ambulance funding;
“The extra £10 million for air ambulances is money well invested, as they play a vital role in getting those involved in the most serious of car crashes to hospitals quickly.”
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