Industry News from Yes Insurance

Drivers in the UK will find that they are paying more tax as a result of this year's Budget, it has been claimed.

This week Chancellor of the Exchequer Alistair Darling increased the cost of fuel duty, with the hike taking effect from October.

And Confused.com has stated that this will result in a £16 per year increase for drivers of Nissan Micras across Britain.

The extra cost is not likely to be welcomed by people who are already struggling to pay high car insurance and road tax bills.

Debra Williams, managing director of the company, commented that the hikes have almost become ineffectual for some drivers.

She said: "Although the small incremental increases which we have seen over the past decade or so may add up to a staggering 19 per cent, spreading the impact has immunised UK motorists to the reality of the real costs."

Meanwhile, the Telegraph has estimated that the Budget has resulted in high tax for nine out of ten drivers.