AA warns Darling not to hammer motorists
* Motorist already paying high price * Fears of a 1p a litre fuel duty rise * Duty up by 5.84p since previous report...
Alistair Darling has been warned not to pull any 'tricks out of his box' to hammer the motorist in his Pre-Budget Report (PBR).
The AA says that fuel duty has risen by nearly 6p per litre since the previous PBR, so the Chancellor should not be looking to increase the levy on fuel.
Fears of 'political' increase in fuel duty
Edmund King, the AA's president, said: 'Petrol and diesel in the UK are already heavily taxed, so we don't want to see the Chancellor pulling any tricks out of his box to hammer the motorist.
'We are concerned that for political reasons he may try to get away with an immediate fuel duty increase rather than wait for the forecast 1p increase next April.
'This could hinder economic recovery because as a nation we are dependent on road transport for getting goods to our shops and ports and for 90% of passenger travel.'
In the previous Budget, Alistair Darling said that fuel duty would increase by 1p per litre on April 1 each year from 2010 to 2013.
Road tax bands to be expanded
He also announced that Vehicle Excise Duty would be further separated out from the current 13 bands to strengthen the environmental impact.
He also revealed that from April 2010, a new first year showroom tax would be imposed on new vehicles.
Pre-Budget Report fact-file
• Fuel duty increase since previous PBR 5.84p per litre
• Impact on fuel prices fuel duty rise represents 42% of the rise in fuel prices since the previous PBR
• Impact on costs for one-car family over a year 87.43 extra for a petrol car; 69.48 extra for a diesel car
• VAT Prices will increase further when rate reverts to 17.5% on January 1