Motoring Budget

A two-year freeze in public sector pay, severe cutsfor servicing and parts. In the bigger picture transport
to welfare spending and a VAT hike, the budget hasfunding cuts, of more than 25% by 2014, could have
given us all something to grumble about, but whata negative impact on road safety measures,
does it mean for motorists?according to Road Safety charity break.
In line with Alistair Darling's suggestions in the MarchSevere cuts in the capital grant, which is used for
budget fuel duty will go up a penny per liter inroad safety engineering measures such as pedestrian
October and a further penny in January 2011. Add tocrossings and speed humps, and the revenue grant,
that the 2.5% increase in VAT and motorists will bewhich is used for local authority-led local road safety
paying around 4.5p liter more at the pumps comepartnerships, are likely to contribute to a rise in road
January, when the VAT rate is set to rise.casualties says the charity.
Although new and used car sales in Scotland andIn a bid to encourage foreign investment to help the
England are unlikely to suffer, the VAT hike is badUK car manufacturing industry the new coalition
news for buyers holding out for 2011 models asgovernment will cut corporation tax by 1%. There
prices will increase by as much as £300, on somewas no mention of new grants for electric vehicle
new models. Motorists can also expect to pay morepurchase or of road charging though.