This week, the Government announced that the 3p increase in fuel duty, due to come into force on 1 April, would be staggered over the coming months.
Rather than bringing in the full 3p hike on 1 April, the Chancellor plans to stage the increase into three phases, with a 1% rise in April, a further 1% rise in October and the final 1% rise in January 2011.
Had the full fuel duty been implemented in April as previously planned, it would have added an average of GBP 1.50 to the typical cost of a tank of petrol.
Steve Chelton, Insurer development manager at Swinton, said: “Our car insurance customers have seen petrol prices escalate over the last year and although diesel costs have risen at a slower rate, prices for both will jump due to the latest duty hike.
“As the UK slowly emerges from the recession, motorists are struggling to cope with the sharp increase in the cost of driving. Despite the fact that fuel duty rise is staggered to ease pressure on family incomes; it’s still having an adverse effect on the average UK family.”
Another measure introduced by the Government sees high-polluting cars facing a “showroom tax”, increasing their vehicle excise duty (VED) by up to GBP 950.
In the last twelve months, Swinton, the UK’s leading high street car insurance retailer has seen a sharp increase in the number of car insurance quotes processed for more fuel efficient smaller-engined vehicles.
“Cash strapped Brits are choosing to cut their outgoings and Swinton has seen a significant increase in the number of policies taken out for smaller engine vehicles which have much cheaper car insurance premiums and are also much cheaper to tax and refuel. With the sharp rises in VED for the highest-polluting cars, we expect to see more motorists switching to smaller cars.”
— With 580 branches nationwide Swinton is the UK’s largest high street insurance retailer — Unlike many other companies in the financial services industry, Swinton is committed to keeping its branches open for business, and part of the community — Swinton provides a one-stop-shop for the insurance and related needs of its clients, offering home, car, caravan, business, holiday, motorbike and even classic car insurance — With a dedicated team of advisors on hand at every branch to search a panel of insurers to offer quality cover at competitive rates
Contacts: SKV Communications Anoushka Done, Anna Asamoah or Mairead Rodden 0161 838 7770 www.skvcommunications.co.uk