Britain's car industry says the UK government needs to "improve consumer confidence" in the forthcoming Budget if the current upturn in the market is to continue.
The Society of Motor Manufacturers and Traders has issued a list of recommended measures for Chancellor Alistair Darling, who confirmed that the Budget will be held on Wednesday 24 March. These include:
Removing or delaying the planned introduction of a first-year rate of tax (VED) on new cars from April 2010
Removing the three per cent diesel car penalty in the company car benefit-in-kind (BIK) calcutaion
Deferring the third stage of increases to DVLA first vehicle registration fees
Removing the £80,000 cap on company cars that adversely impacts UK-buil premium car makers
"Government has recognised the importance of manufacturing and has signalled its commitment to working collaboratively with industry," said SMMT chief executive Paul Everitt. "This has been vital in minimising the impact of the recession on the motor industry.