Labour could target motorists in Autumn Budget as experts plead | Personal Finance | Finance
Motorists might be on the hook for some hefty tax increases in the Autumn Statement with some experts suggesting it could actually be a positive change.
In light of Sir Keir Starmer‘s recent comment that the forthcoming budget will be”painful”, wallets are expected to feel the pinch come October 30th.
Yet, for drivers, this sting could come with benefits—if Labour avoids one particular tax rise, experts caution.
A survey by Auto Express reveals Brits’ frustration with incessant potholes, soaring fuel costs and rampant car crime, noting that many would not mind a tax hike if it meant addressing these issues.
Prior to the financial rundown, the magazine has penned a letter to Chancellor Rachel Reeves, cautioning that any upswing in motoring tax would contradict Labour’s commitment to not increase working people’s tax load while still fulfilling their vow to mend the nation’s roadways.
Due to the repeated references to the £22 billion “black hole” left by the Tories, Paul Barker, editor at Auto Express, suggested that targeting drivers through ramped-up fuel duty or Vehicle Excise Duty might be on the agenda to close this gap.
The Chancellor has been cautioned not to use the “excuse” of green targets or a push towards electric vehicles as it could lead to a backlash at the polls.
Instead, recommendations have been put forward for the government to focus on “increasing the threshold for the £410 ‘expensive car’ tax on EVs, investing in road infrastructure, tackling the rising issue of car crime, and taking immediate action to fix the country’s pothole-riddled roads”.
Labour Transport Secretary Louise Haigh, during her pre-election campaign, had pledged a hefty £8.3 billion to address the UK’s pothole crisis, and now is seen as the perfect time for the government to deliver on this promise
With the Autumn Statement approaching and motoring issues bound to be a hot topic, the editor emphasised that potholes, soaring fuel prices, and car crimes “should be dominating the government’s agenda”.
Highlighting the 130,000 cars stolen up to March 2024 and the tragic deaths of 118 cyclists due to potholes, Barker asserted: “It’s time for the government to respond to drivers’ priorities.
“That means making significant investments in road infrastructure and ensuring effective police action against car crime, while staying true to their manifesto promise not to raise taxes on working people. This is not the moment to tighten the screws on drivers who are still reeling from the cost-of-living crisis and struggling to make ends meet.”
