Motorists will lose out under new road tax reforms

In response to the Government's admission that nine million motorists will lose out under new road tax reforms, Ashton Berkhauer, insurance expert at uSwitch.com, comments on what this will mean to the average motorist: "The best-selling cars in the UK will see a 12% rise in road tax, meaning motorists will be forking out an extra £25 a year on average. It's not just the typical ‘gas guzzlers' or luxury cars that will take a hit. From 2009 - 2010, the new road tax reforms will cost drivers of popular cars like the Vauxhall Vectra an extra £90 a year - a 43% hike in their tax.

"What's worrying is that drivers of older cars will find that their road tax will cost as much as 18% of the value of their car. For example, a 2001 Volkswagen Golf has a second-hand value of £2,400. Under the new road tax system owners of this vehicle will pay £260 in tax - 11% of the car's value.

"Increased road tax is another bitter pill for motorists who are already forking out an extra £18 every time they fill their tanks at the pumps. Filling up now costs £67 a time on average (£1,758 a year), so just where do the Government think this extra money will come from? Insurance premiums have also risen by 5.8% over the last year. As a direct result of all these price hikes, motorists are being forced to think carefully about when, where or even if they use their cars. For some there are other options such as public transport, but for many there is no other choice. Those in rural communities, the elderly, the disabled and lower income families will really suffer.

"Any motorists looking for a new car will have to really consider the CO2 emissions to make sure they keep their costs as low as they can. We have already seen new car sales fall by 6.1% in the past year, it will be interesting to see what further effects these spiralling costs will have on the forecourts."