The UK’s leading road safety charity, IAM RoadSmart, is calling on the Chancellor to take steps to both saves lives and reduce the impact of road traffic collisions in her Autumn Budget. By incentivising the take-up of additional road safety courses through the tax system, it will also help save motorists money as the UK emerges from a cost-of-living crisis.

With the cost of insurance hitting record highs earlier this year and being a huge concern for drivers, particularly the under-25s, the charity recommends striking off Insurance Premium Tax for those who undertake additional driver training.

To provide a boost to vulnerable motorcyclists, IAM RoadSmart also wants the Chancellor to reduce VAT on motorcycle air vests.

While the Chancellor might be tempted to increase fuel duty, IAM RoadSmart urges her to give motorists some breathing space by retaining levels at the current 52.95p after a period of record high fuel prices over the last two years.

Finally, with an ageing population, the charity calls on the Treasury to allocate funding to allow GPs to prescribe mature driver assessments, preventing deaths involving elderly drivers.

Cancel Insurance Premium Tax

IAM RoadSmart is calling on the government to reduce Insurance Premium Tax (IPT) from 12 percent to zero for those who undertake additional driver training.

The cost of insurance reached record highs earlier this year, with the average premium costing around £600[i]. The average premium for under 25s is now more than £2,000. [ii]

Research by IAM RoadSmart shows an increase of 25% in the number of drivers aged 17-20 being caught driving without insurance between 2022-2023.[iii]

IAM RoadSmart Director of Policy and Standards Nicholas Lyes said: “This shows that these high premiums are becoming unaffordable particularly for those groups which will be disproportionately impacted. They could encourage young people to either break the law by driving uninsured, or give up on driving altogether. How can it be right that youngsters, often at the start of their careers and needing a vehicle to get to work, may be priced out of driving altogether.

“Furthermore, there is the human cost of road traffic collisions caused to survivors and their families, as well as the cost to the Treasury – £43bn per year. By encouraging drivers to upskill and save on their premiums, countless deaths and serious injuries will be prevented.”

Reduce VAT on life-saving motorcycle air vests

Motorcyclists make up around 3% of all traffic but represent 19% of all fatalities[iv], making them the most vulnerable road users. Motorcycle helmets are regarded as PPE, so are not subject to VAT. This change in policy will simply bring air vests in line with many other forms of PPE.

IAM RoadSmart Director of Policy and Standards Nicholas Lyes said: “Slashing VAT on motorcycle air vests will not only be saving riders’ lives but will also save money by increasing their uptake and reducing the cost to the emergency services.”

Freeze fuel duty

Research by IAM RoadSmart shows that the two biggest concerns for motorists are either cost, or the state of the roads. The charity calls on the Chancellor to maintain the current the 5p cut that was introduced in 2022, which has helped motorists save around £50 a year. If the rate is increased, this should be partially ringfenced into repairing Britain’s crumbling road network and filling in potholes.

IAM RoadSmart Director of Policy and Standards Nicholas Lyes said: “Hard-done-by motorists will find any increase in fuel duty a bitter pill to swallow, given that they’re already being drained by hefty insurance premiums, not to mention higher repair costs after driving through the country’s crater-ridden roads.

“At the very least, if fuel duty is to increase, the Chancellor should ringfence this money to repair Britain’s crumbling road network. Not only will this save motorists money in repairs, it will more importantly save lives, especially for those travelling on two wheels where the impact of hitting a pothole is likely to be far more severe.”

Mature Driver Assessments

According to the Department for Transport, the number of people that are killed or seriously injured increases over the age of 70.[v] This accelerates when people reach 80.

The cost of a standardised mature driver assessment is £85. An initial pilot is recommended for up to 100,000 drivers, at a cost of £8.5m to the government.

Nicholas Lyes, Director of Policy and Standards, said it was particularly concerning given that it is happening when the country has an ageing number of licence holders.

He said: “We’re concerned there’s nothing formally in place to help older drivers who want to keep their driving in check, and moreover, no process for GPs to be able to refer an older driver who they have serious concerns over their ability to drive. The country’s population is ageing, so there will be demand.

“The modest initial cost could make a huge difference if it encourages otherwise unsafe drivers to stop driving. Likewise, if older drivers need reassurance that they are still fit to drive, this will give them confidence behind the wheel and have a wider societal benefit.”