What would it mean for motorists in the United Kingdom (UK) when they heard the Autumn Statement? But first, what is it all about may be a context which need a better comprehension.
An Autumn Statement is an explanation about the Review of Autumn Spending in Britain. And as it sounds more of an executive topic, a question follows: What would it mean for motorists in the UK?
Recently, Chancellor George Osborne had delivered his Spending Review and Autumn Statement. These two statements of one at the higher position in the government are a thing to reckon with by the concerned citizens of the country including the motorists.
The Autumn Statement is an annual update of several plans for the good of the country’s economy. The Spending Review is the one that sets out what will be the government spending within the next four consecutive years.
In his speech that lasted over an hour, Osborne had made two u-turns unexpectedly and surprisingly pledged to ramp up spending on rail and roads. He also emphasised on giving attention to the problems of insurance claims and investments on road constructions. So, as motorists, there are some factors how these developments could affect you.
(1.) The national pothole fund – The Government has committed to spend £250 million for the pothole repairs over the next five years in some areas across the country. This is what Osborne has described as a “permanent” scheme.
The AA group has recently conducted a survey, and it found out that a third of all drivers in the UK has suffered some kind of pothole damage to their cars.
On the other hand, RAC Chief Engineer David Bizley, however, told newsmen that the government’s own backlog for local road repairs is up to £8.6 billion. It only manifests the shortage scale of the funding.
It can be recalled that last year, a research was published which has found that around 40,000 motorists in the UK have claimed pothole compensations in the year 2013. It was up by 14,000 compared to 2012.
The big question now is: How would it affect you as a motorist?, Automobile Association President Edmund King said, the £250 million pothole fund for over five years is only a very small amount for a massive maintenance backlog. This fund may only fill 4,000 potholes in Blackburn Lancashire but it could never cover the national maintenance backlog.
The government also wants to tackle the compensation culture, which costs the insurance industry £2 billion every year, or £90 for each insurance policy. Then, it has made harder for their policy holders to be rewarded by their insurers.
So, there will be some reforms to be undertaken which will remove the right to general damages for injuries on minor soft tissues and then remove some legal costs by allowing a personal injury claim of up to £5,000. Previously, it was £1,000.
How it affects you as a motorist? Well, it’s really difficult to predict what might be the insurance premiums in the year 2017. According to some reliable sources, prices have always been on the rise over the last succeeding 12 months.