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Road tax rise is 'blunt instrument' on motorists

MOTOR dealers accused the Chancellor of attacking the motorist without investing any proceeds in transport. The Retail Motor Industry Federation, representing dealerships in the county, said the increase in Vehicle Excise Duty (VED) for 4x4s and other large vehicles should have been offset by extra investment in transport.

"There are more effective ways to influence the buying habits of motorists than the "blunt instrument" approach of a road tax increase," said Sue Robinson, director of the RMI National Franchised Dealers Association.

"Instead of punishing motorists for choosing what is available, the Government should be doing much more to encourage vehicle manufacturers to develop hybrid vehicles. Consumers need to be given a proper choice, and manufacturers and vehicle dealers need to be able to give it to them."

She added: "The Chancellor is using road tax as a weapon against motorists, and it will be those who really need 4x4s for their daily lives that suffer most. Families, rural dwellers, farmers, and business users are less able to absorb this further increase, as they are already paying extra to use their vehicles through fuel duty, company car tax, and other measures."

SHOPKEEPERS gave the Chancellor eight out of 10 for his Budget. The British Retail Consortium (BRC), which represents business across the county, claimed Mr Brown could have gone further on reducing the business tax burden but had made some positive announcements on jobs and the environment.

Director general Kevin Hawkins said: "As always the devil may turn out to be in the unannounced detail but the Chancellor has rightly made a worthwhile reduction in Corporation Tax and the anticipated ‘green’ measures seem very sensible."

He added: "The cut in Corporation Tax is good news. It is being somewhat offset by cuts in a number of tax reliefs but is a welcome simplification and a decisive move in favour of jobs and investment."

As for green issues, Mr Hawkins was disappointed that the Chancellor had failed to cut Vat on energy efficient products to five per cent immediately rather than waiting for Europe-wide agreement.

"If the EU is serious about reducing carbon emissions, it will back this initiative," he said. "It is a pity that incentives for small scale renewable energy equipment such as wind turbines and solar panels are confined to homes but the Chancellor has conceded the principle. We hope this will be extended to business premises next year."

LONDON Mayor Ken Livingstone has praised the announced package of green measures as a way of boosting the region's environmental credentials - and changing public attitudes. He said: "I welcome the Budget's combination of incentives to drive the take-up of low carbon technologies, particularly ending stamp duty on low carbon developments, along with pricing deterrents to discourage the sale of goods, such as gas-guzzling cars, that cause high levels of emissions."

Mr Livingstone added: "The Budget reinforces the Government's commitment to tackle climate change, made in its Climate Change Bill. I hope these are the first steps towards more comprehensive carbon pricing that we will see in future budgets."

However, Roger Lawson, chairman of the Bromley Borough Roads Action Group and London co-ordinator of the Association of British Drivers, slammed the measures.

Mr Lawson, who happily admits to driving a gas-guzzling Jaguar, said: "I think it's just an environmental gesture. It's gesture politcics and won't make much difference in real terms.

"Does the Chancellor expect me to change my car, because it's very expensive to swap one car for another. I think it's just reaction to Cameron's green policies."

He added: "People who've got bigger cars are already paying more in petrol so there is already a strong tax incentive against buying a big car.

"This is just another trivial gesture because cars actually emit a very small proportion of all CO2 emissions."

ACCOUNTANTS warned that the "piecemeal" Budget could cause confusion for small firms.The Institute of Chartered Accountants in England and Wales (ICAEW), which represents many firms across Kent and the region, welcomed the planned 2p cut in corporation tax.

But Fay Deakin, regional director, said: "Yet again, the Chancellor has ignored the requests of business and of professionals. A two per cent cut in corporation tax is a step forward, but should be implemented now not in 12 months.

"By failing to do something about our over-complicated tax system and with the other changes particularly for smaller businesses, the Chancellor has missed an opportunity to ease the regulatory burden. It’s therefore not surprising that many businesses across the country feel disengaged from the political process."

She added: "Whilst we welcome many of the specific measures that the Chancellor has announced, it’s still a piecemeal budget which tinkers with the system rather than starting the comprehensive reform which is so overdue. The challenge for his successor will be to reform as much as to be prudent."

ERIC Robinson, of Denimex, manufacturer of livestock identification products in Lenham, near Maidstone, condemned a rise in corporation tax for smaller businesses from 19p to 22p over the next three years.

He said: "Although the headlines are focusing on corporation tax coming down for large businesses, small businesses will be hit by a three per cent increase in corporation tax over the next three years. To help us withstand price pressure, we are investing heavily in automating our production line to contain unit costs.

"Denimex hasn’t increased the price of its tags in the last seven years, and thanks to our investment programme, we should be able to maintain our competitive prices for the foreseeable future."

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