The Budget 2008: Reactions

Earlier today Chancellor Alistair Darling announced he would postpone a two pence per litre rise in fuel duty and introduce a new tax system.

We asked the UK’s top motoring and political figures for their reactions.

On the postponed 2p rise in fuel duty

The AA

AA president Edmund King said: “This temporary relief should quell any panic at the pumps. The Chancellor has listened to us and made a sensible decision.

“The proposed increase would have taken fuel prices to record new levels.”

The RAC Foundation

The RAC Foundation has welcomed the decision to delay the 2p fuel duty increase as “the only bright spot in a budget that seemingly does nothing positive for the motorist.”

On the new VED tax bands

The RAC

Shelia Rainger, Acting Director of the RAC Foundation said: “Measures that make people think carefully about choosing a vehicle that matches their needs are always welcome.

“However, we believe incentives for choosing a more efficient car are more likely to win the public over than swingeing taxes.

“The Government should monitor the effectiveness of this tax and be prepared to drop it if it is not working.”

The SMMT

A Spokesperson for the Society of Motor Manufacturers and Traders said: “Since the introduction of CO2-based road tax in 2001, there has been a clear trend towards lower-CO2 new cars,” said SMMT chief executive Paul Everitt.

“Encouraging even more buyers to choose models with class-leading emissions should be the priority. We are therefore pleased to see an increase in the number of bands to 13 from 2009.

“However, introducing what is effectively a sales tax for many new cars is a retrograde step. Trying to force people out of high-value cars has no environmental merit and will be seen as a smokescreen for revenue-raising.”

On the Budget in general

Boris Johnson

The Conservative Candidate for Mayor of London, Boris Johnson said:

“This budget does nothing to tackle the big issues that matter to Londoners, such as making our streets safer and improving public transport.

“The Chancellor finally admitted today what many have suspected – that Labour is working towards a national road pricing scheme.

“Ken Livingstone, with support from the Government, will now be encouraged to bring in his London-wide road tax scheme sooner rather than later.”

Greenpeace

“If the public are to support green taxation, they have to know that the money is going to a good cause. If the extra cash raised by taxing a gas guzzler goes towards bailing out the national debt then it will just cause resentment.

“If an extra 2p on a litre of petrol goes to finance the Northern Rock, then of course we will see more fuel protests.”

Tiff Needell

Fifth Gear presenter and ex-racing driver Tiff Needell exclusively told Auto Trader: “There is no logic in targeting car owners; the CO2 our vehicles produce is insignificant in the world scheme of things.

“It is just a method of taxing middle class Britain, and no other country seems to be doing this.”