2012 Budget Could Influence Motorists

March 27, 2012 - PRLog -- Chancellor George Osborne reported the 2012 budget statements recently, delivering with it adjustments for drivers and car insurance policy holders which could greatl affect the motor insurance budget. Interested to find the best motor insurance budget? Get it here http://cheapcarinsurancequotes.eazs.com/prld2-autoinsurance

Among the biggest changes for drivers is the planned fuel duty increase, which has officially received the go-ahead. From August, motorists will pay an additional 3.02 pence per litre at the pumps.

Mr Osborne insists the 2012 Budget intended to "ease the burden on motorists", however, many industry bodies do not agree. This is true when it comes to motor insurance budget. You can view the updated motor insurance budget here: http://cheapcarinsurancequotes.eazs.com/prld-autoinsurance

"At a time of record prices at the pumps, the August increase in duty is a budget blow-out which will force drivers off the road and could bring a summer discontent for many," AA President Edmund King told Auto Express.

"Only last week the Prime Minister told US students that UK fuel prices would make them 'faint', yet the Government seems intent on inflicting more pair for no gain on drivers," he continued.

"Ironically, such a hike in duty doesn't necessarily help Government finances, as people will cut spending at the pumps and in shops, and it could fuel inflation."

In addition to the planned fuel tax increase, the Chancellor announced company car tax increases. From 2015, zero and ultra-low emission vehicles will no longer be exempt from company car tax.

Owners of electric cars will be responsible for paying 13 per cent of the vehicle's value in tax, and will rise to 15 per cent in 2016.

Maximum company car taxes will rise from 35 per cent to 37 per cent.

Mr Osborne also stated he would be exploring road tax reforms to "ensure all motorists make a fair contribution to maintaining the public finances, and to reflect continuing improvements in fuel economy." The best deals in motor insurance budget can be seen at http://cheapcarinsurancequotes.eazs.com/prld3-autoinsurance