The Office for Budget Responsibility (OBR) has warned the Chancellor that in two years there will be a shortfall of £500 million in fuel duty, and a further £100 million drop in car tax income. Why? Because so many motorists are buying greener, more fuel efficient cars bearing a lower tax rating.
There will of course be some who spot an irony here - after all, the government has been trying to get us into more fuel efficient vehicles for years. Now we finally have, a big black hole has opened up in the government's finances.
If rises go ahead, some might wonder if it is possible to reduce the costs of driving at all. But will they actually increase duty to address this missing cash? It's worth remembering that HMG intends to: "ensure that all motorists continue to make a fair contribution to the sustainability of the public finances" - in the small print of the recent budget.
There is perhaps a risk that the car will soon be seen as a machine that is only used for essential journeys, and becomes less of a recreational possession.
With luck though, the combination of looking elsewhere for tax increases and a bounce-back in the economy will still make it worthwhile to invest in green car technology. At the very least breakdown cover will remain affordable!
Breakdown Cover from 
