Industry call for car-friendly budget

Vehicle manufacturers are urging Alistair Darling to take a series of measures that should put a smile on car buyers' faces and help the industry get back on its feet.

The budget is due on March 24 and in its annual pre-budget submission the Society of Motor Manufacturers and Traders (SMMT) urged the chancellor to take the following steps:

• Remove or delay the planned introduction of a first year rate of tax (VED) on new cars from April 2010
• Remove the 3 per cent diesel car penalty in the company car benefit-in-kind (BIK) calculation
• Defer the third stage of increases to DVLA first vehicle registration fees
• Remove the £80,000 cap on company cars
• Implement clear and concise vehicle tax and incentive programmes particularly for ultra-low carbon vehicles
• Reconsider the removal of the 20p per litre incentive for biofuels due to end in April 2010

SMMT chief executive, Paul Everitt, said: 'Government has recognised the importance of manufacturing and has signalled its commitment to working collaboratively with industry. This has been vital in minimising the impact of the recession on the motor industry. The scrappage scheme has been a lifeline for the new car market, but further measures are now necessary to build confidence and encourage new investment.'