How do you expect to pay for your motoring in the future?

Torbay Weekly

As Mr Sunak prepares his Budget, there is much speculation about how the Government will replace the revenue from fuel duty.

This currently amounts to around £28 billion and a plan will need to be in place, as the sales of electric vehicles grow, between now and 2030.

It is likely manufacturers will be required to meet annual targets for electric vehicle sales with fines for those who fail them.

This is likely to also see the gradual phasing out of the current grants and low tax rates for company car buyers and those taking cars with 'salary sacrifice'.

If the new zero emission mandate could be introduced as early as possible it would allow better planning for the industry and power providers.

If charge point providers knew how many electric vehicles were going to be sold each year, they could ensure they had adequate charging points and the Government would be able to work out how much fuel tax revenue they were likely to lose each year.

Ministers have been examining a nationwide road pricing scheme with several possible ideas being discussed particularly after a poll from the Social Market Foundation suggested there is support for it.

As a replacement for road and fuel duties, 39 per cent backed the idea with 26 per cent against.

The challenge is how to produce a scheme that is fair to all users and rural area users who need to travel further will need to find a way to receive compensation such as a special allowance of miles.

Motorists need to lobby their local MPs to ensure their concerns are discussed at top level and they are not unfairly penalised.

Motorists are under pressure at this time, not only with the shortage of new vehicles but petrol shortages too.

The price of petrol continues to rise and there is the likelihood electric charging bills will rise along with all energy increases.

There is some good news in the increased supply of used cars as a result of the new September market volumes, with prices beginning to fall.

The order take for new vehicles remains very strong in spite of customers being told they will probably not receive delivery until well into next year.

The 2021 new car market will end up below expectations and there is still not enough clarity on when the supply of semi-conductors will return to normal.

As more cars return to the UK’s roads accidents are rising, putting further pressure on component supplies, so prepare for delays until stocks and supplies build up to pre-Covid levels.

The outstanding MOTs, following the Government's extension in 2020, added to service volumes in September and it appears customers were able to get their MOT carried out by the due date as a result of good preparation by the trade.

There are still shortages of good technicians and it is possible motor dealers will lose sales advisors if the order rate drops off and stocks run out.

Challenging times but we are used to volatility and will continue to do our best for our customers.

Keep safe and keep smiling. I look forward to next week.