Car industry sounds budget fears
22 March 2006

Car manufacturers have voiced concern at the British government's new Vehicle Excise Duties, announced in today's Budget.

The Society of Motor Manufacturers and Traders chief says it is disappointed that Chancellor Gordon Brown had not give more support to the UK car industry in his latest announcements. 'The motor industry is a key value-add sector,' said SMMT Chief Executive Christopher Macgowan. 'The media focus on Vehicle Excise Duty masks the more serious issue of support for manufacturing. We've heard nothing to help ease costs, reduce the amount of red tape and drive a manufacturing sector accounting for more than 220,000 jobs to a more competitive future.'

He added: 'Stability, certainty and long-term must be the watchwords when changing sensitive tax instruments. None appear to have been applied here.'

The SMMT says up to eight per cent of the car market will be forced into the new 'superband' of high-emission cars paying £210 duty.

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