Budget 2006: Brown turns green? - Reaction: Society of Motor Manufacturers

The Society of Motor Manufacturer and Traders (SMMT) said that today's road tax changes sent a worrying message to consumers and car makers about the future of motoring taxes.

SMMT chief executive Christopher Macgowan said: 'Stability, certainty and the long-term must be the watchwords when changing sensitive tax instruments. None appear to have been applied here.

'Now the uncertainty that followed the collapse of grants for the cleanest vehicles will be mirrored by fears about a budget-by-budget bidding war on road tax changes.'

The SMMT said that the VED overhaul would also cost dealers in terms of time and money as they replaced all of the colour-coded environmental labels introduced last year to help motorists buy more efficient cars.

Macgowan also said that reducing costs and red tape in the car manufacturing in the UK were also desperately needed, but had not been addressed by Mr Brown.

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