MOTORING organisations reacted angrily to another big rise in the cost of fuel in the Budget.

The AA said the average driver would shell out an extra £63 a year.

While Chancellor Gordon Brown confirmed he would introduce a £55 cut in road tax for smaller cars from June 1, the AA said most drivers would not be affected.

Leaded and unleaded petrol has gone up by 4.25p and 3.79p a litre respectively, diesel up by 6.14p a litre and ultra-low sulphur diesel up by 4.96p a litre.

While road tax is to fall by £55 on small cars, on other cars it goes up by rate of inflation.

Mr Brown said company car reform would encourage the use of fuel-efficient cars, and employer-run or employer-subsidised buses, car-sharing and other green transport would be tax-free for employees.

But Rebecca Rees, AA spokeswoman for Oxfordshire, said the Chancellor's environmental excuses for hitting motorists were wearing thin.

She said: "Motorists filling up their tanks from 6pm yesterday will be handing over £8.50 to the Chancellor in every £10 they spend.

"And the latest rises in fuel duty will add around £63 a year to the average driver's petrol bill.

"Those motorists with smaller cars will welcome the £55 road tax reduction, but make no mistake it doesn't affect most drivers. The vast majority will be worse off." Mark McArthur-Christie, of Witney, who is roads and traffic spokesman for the Association of British Drivers, said the fuel tax rises were barely the tip of the car tax iceberg. He said: "Car taxes now total £32 billion a year - more than the revenue from Corporation Tax - yet only a fraction of this is re-invested in roads and transport.

"The new taxes proposed by the Government will have the greatest impact on the most vulnerable in society.

"The elderly, the disabled and those in rural areas who rely on their cars will soon be forced to pay more for them.

"It is inequitable to tax drivers for using the only viable method of transport open to them. Public transport is not a viable alternative for many people. It is unreliable, inflexible, expensive and unpleasant."

RAC head of campaigns Edmund King said: " Many rural communities will feel cut off from the rest of the country as they have not got alternative means of mobility, apart from the car.

"If the Government is to maintain the trust of the country's 32 million motorists they must show a commitment to beating congestion, improving road maintenance, speeding up the bypass programme and improving traffic management."

Story date: Wednesday 10 March

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