Experts at the AA have called on Jeremy Hunt to introduce a string of motoring changes in next week’s Spring Budget.
The group has called on the Chancellor to tackle pavement car tax fees for electric car owners with many motorists charged more.
They have also urged policymakers to keep petrol and diesel prices “affordable” by not increasing fuel duty fees.
Finally, the AA has also called for major car insurance charges with young motorists targeted with added costs.
Jakob Pfaudler, the AA’s chief executive officer, said: “The Chancellor has the chance to give confidence to drivers now, and for the future, in the final Budget before the general election.
“To help households tackle the cost-of-living crisis, maintaining the freeze in fuel duty and equalising VAT for on-street EV charging to match domestic energy rates would be a great first step.
“Similarly, help to make the cost of compulsory insurance more affordable, especially for younger drivers, would be well received.”
Car tax changes
The AA has called for the end of varying VAT rates for electric car owners as take-up of the new vehicles continues to grow.
Currently, those topping up at home will pay just five percent VAT compared to 20 percent at public charging bays.
It means those without access to off-street parking such as motorists living in apartments will pay a lot more than those who have access to their own driveway.
The AA has also warned there should not be an above-inflation increase in Vehicle Excise Duty (VED) rates.
Meanwhile, the group claims that future VED rates applied to electric cars should remain lower than fees issued to petrol and diesel vehicles.
Fuel duty
The AA is campaigning for a continued fuel duty freeze to ensure pump prices are “affordable” for all road users.
Fuel duty has remained the same rate since 2011 while a 5p cut introduced at the start of the cost of living crisis has not yet been revoked.
It means the current charge stands at 52.95p per litre with widespread support for keeping the fee where it is.
A petition from FairFuelUK received over 120,000 signatures and the backing of senior politicians such as Priti Patel and Suella Braverman.
Car insurance
The breakdown group has also asked for a cut to Insurance Premium Tax (IPT) to lower the cost of car insurance.
They have proposed that IPT should be cut by a whopping 25 percent for all drivers to help bring down total premiums.
Meanwhile, they claim rates should be cut by at least 50 percent for young motorists who often pay the highest for cover.
