SMTA: "Budget failed to deliver" 24 | 11 | 2017

    THIS WEEK’S AUTUMN BUDGET missed the opportunity to introduce a “scrappage scheme” aimed at heavier polluting older diesel cars, according to the Scottish Motor Trade Association. The Scottish automotive authority believes Chancellor Phillip Hammond also failed to deliver additional promotion of cleaner vehicle ownership. (Related: Autumn Budget — What it means for you)

    The response comes just a few weeks after the SMTA blamed a “lack of clarity coming from the Scottish Government on their various clean air policies and the on-going ‘demonisation of everything diesel’, for a near 15% drop in new car registrations in October. (Related: SMTA blames Scottish Government for lack of clarity)

    Speaking exclusively to Scotcars, SMTA chief executive Sandy Burgess said: “We would have welcomed some level of ‘scrappage scheme’ for those heavier polluting older diesel car drivers to be incentivised towards newer more economical and environmentally friendly cars.

    “The Budget also failed to recognise some of the opportunities that are available to the UK Government to help promote cleaner vehicle ownership at this challenging time for the industry as a direct result of the weakening consumer sector.”

    The SMTA’s response focuses on:

    DIESEL CARS

    “We see another challenge to diesel car drivers alone with the introduction of a Vehicle Excise Duty (VED) supplement which will apply to new diesel cars first registered from April 1, 2018. In effect, their First-Year VED Rate will go up by one band.

    “This will not apply to next-generation clean diesels, being those which are certified as meeting emissions limits in real driving conditions. But the key point is the new tax will apply to cars, not vans or goods vehicles.

    “Clearly this disadvantages car buyers from trading up to newer cleaner diesel cars.

    “Our current cohort of Euro 6 diesel cars still represent the most efficient, accessible and affordable way of upgrading to a more efficient cleaner motor vehicle.”

    FUEL DUTY

    “The Chancellor of the Exchequer stated that he “will once again cancel the fuel duty rise for both petrol and diesel that is scheduled for April 2018”.

    “This is good news and will obviously minimise the rising costs to every motorist using ‘fossil-fuelled vehicles’ across Scotland and beyond.”

    ELECTRIC VEHICLES

    “Yet more funds and tax incentives for electric car drivers were announced. These will include a new £400m charging infrastructure fund, an extra £100m in Plug-In-Car Grant, and £40m for research into charging. Also, electric cars which are charged at work will not incur benefit in kind charge. “

     

    Sandy Burgess continued: “The UK Government’s challenge/ambition to eliminate the sale of totally fossil-fuelled vehicles by 2040 will require a significant increase in this sort of expenditure for many years: the Scottish Government’s recently announced ambition to achieve this by 2032 even more so.

    “As with all things however, the devil will be in the detail, and until such is available it is very difficult to make further comment. We are actively discussing all of these challenges with Transport Scotland on a regular basis.”

    The SMTA will now need to review the Budget in detail and analyse the full impact that its measures may have on its members and the wider motoring communities across Scotland.

    Related: Scots car giant 'grows' apprentices

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    Jim McGill

     

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