Budget 2016: The AA pleads with chancellor George Osborne not to hit motorists by hiking insurance premium tax or fuel duty

Hayley Kirton
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The company is keen for Osborne not to knock motorists by targeting some quick wins (Source: Getty)

Motoring insurer and breakdown cover provider AA has today revealed that it has written to chancellor George Osborne to ask him not to hike insurance premium tax or fuel duty in next month's Budget.

The company is concerned that the chancellor might be considering raising one or both as a quick win to boost the Treasury's coffers, despite an increase to insurance premium tax having already being brought in last November.

The AA said that the previous tax hike had already caused the average premium quoted for car insurance policies to rise by £18 and had also impacted the cost of roadside assistance cover.

"The insurance premium tax hike from the last budget is a double-whammy that only affects drivers as it hits insurance and roadside assistance costs, particularly hurting those on low incomes; and young drivers, who pay the highest premiums," said Edmund King, president of the AA.

Meanwhile, the AA is also keen for there to be no rises to fuel duty, pointing out that it makes up a substantial amount of the typical family's household bills, despite recent price drops.

King continued: "The country is emerging from recession and there is greater confidence among British families. Not only do hard working families rely on low fuel costs for their day-to-day driving but industry is also dependent on motor fuel for deliveries and mobility of their workers."

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