Car Industry Reaction To UK Budget Mainly Positive

So far, the auto industry reaction to the latest budget from Chancellor Osborn has been positive. Some aspects of the financial document were anticipated, while others were a pleasant surprise. Even so, some experts still have doubts that motorists will receive long-term benefits from it.

British Vehicle Rental and Leasing Association Chief Executive Officer John Lewis is very positive about the new budget. According to him, it was widely anticipated that the 1p fuel duty increase would be abandoned.

However, he and others were surprised by the fuel duty reduction of 1p per liter as well as the postponement of the inflationary increase until 2012.

Mr. Lewis stated that the recently announced “fair fuel stabilizer” is a creative way to shift the burden of taxation upward when crude oil prices increase. Black Horse Managing Director Chris Sutton spoke on behalf of the car finance industry, stating that he welcomed the move toward lowering driving costs.

On the other hand, he does not think that car dealers will reap significant benefits.

In Mr. Sutton’s opinion, neither the car dealerships nor the availability of car finance will be affected over the short to medium term. Alphabet Director Mark Sinclair reported that the fleet industry will not experience major long-term savings.

He said that fuel levy increases will simply be linked to the inflation rate. This rate is currently over 100 percent more than the government’s target.

Right now, everyone is merely forecasting, with the effects of the budget on the availability of car loans yet to be determined. The short-term results of the new budget are positive for drivers in terms of a fuel duty decrease.

In light of rising global gas prices and increasing expenses in other areas, UK drivers are especially thankful for the slight amount of relief at the pump.