Skip advert
Advertisement

Car industry warns Government against tax hikes

SMMT says any road tax increase for motorists would damage buoyant UK car market

Diesel motorway pollution smog traffic

The car industry has warned the Government not to be tempted to hike taxes for motorists after the next election.

Britain goes to the polls in May, and there are fears that whoever forms the new Government may again target drivers to raise revenue.

But the Society of Motor Traders and Manufacturers (SMMT) believes this would be a backward step, particularly in light of another strong year for registrations in 2014.

Advertisement - Article continues below

• Best selling cars of 2014

Chief executive Mike Hawes said: “Whoever wins, we know there will be a period of austerity to follow. We are uncertain about the nature of the austerity.

“There is likely to be cutbacks in spending and increases in taxation. “We want to be able to say to whoever wins the election that the market is strong, it is delivering revenue to the Exchequer. You do not want to upset the market.”

Death of the tax disc: everything you need to know

One particular area of concern is that Vehicle Excise Duty could be hiked on expensive vehicles – including UK-built models such as Range Rovers – with more affluent consumers being targeted for higher taxes as the drive to reduce the deficit continues.

Hawes pointed out: “It’s surprising how sensitive consumers are to VED. What we are trying to say to the Government is that in the last few years policies have been very sympathetic to UK manufacturing.

“We want to make sure we have a strong domestic market, and the recovery isn’t undermined by a specific policy in taxation. “The sector isn’t broke, so don’t fix it.” Hawes also reiterated the SMMT’s desire for Britain to remain in the European Union.

Now find out about the best new cars to buy in 2015...

Skip advert
Advertisement
Skip advert
Advertisement

Most Popular

Toyota GR Corolla hot hatch is on the way to the UK
Toyota GR Corolla - front cornering

Toyota GR Corolla hot hatch is on the way to the UK

The success of the GR Yaris has persuaded Toyota that there’s room in its UK range for the high performance Corolla
News
19 Jun 2025
Car Deal of the Day: a potent 335bhp Volkswagen ID.7 GTX for a rock bottom price
Volkswagen ID.7 GTX - front static

Car Deal of the Day: a potent 335bhp Volkswagen ID.7 GTX for a rock bottom price

GTX Plus gives some extra punch to an already excellent electric saloon. It’s our Deal of the Day for 20 June.
News
20 Jun 2025
Citroen recall sees owners told to stop driving “immediately”
Citroen C3 Mk2 - front tracking

Citroen recall sees owners told to stop driving “immediately”

A ‘Stop-drive’ order has been issued by Citroen following a fatality that may have been caused by a faulty Takata airbag
News
20 Jun 2025