Car Insurance News from Be Wiser

Government plans 'should help car buyers'

The VAT cut announced yesterday could help car insurance customers looking to trade in their current model, it has been claimed.According to the Retail Motor Industry Federation (RMIF), reducing the tax from 17.5 per cent to 15 per cent will see the price of vehicles fall.Director Sue Robinson commented: "The VAT drop will also have an impact on the prices of thousands of other consumer goods and services, leaving cash-strapped households with more money to spend." She added it was a step in the right direction in helping to restore consumer confidence.However, Ms Robinson pointed out the increase in fuel duty announced by Alistair Darling in his pre-Budget report was not such good news for motorists.She claimed measures like these meant the government's plans may be less attractive than they initially appeared.In the weeks preceding Mr Darling's pre-Budget report, RMIF has been calling for VAT to be cut to 12.5 per cent.

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