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Inflation Deflates London Motorists City Driving Plans

The Office for National Statistics or the ONS has released the inflation figures, which at 2.2% in the previous month is still above the government's 2% target. This figure is mainly caused by fuel prices and food prices rising rapidly. In fact, food prices have risen an astronomical 6.1% in the previous month, which is the highest climb since six years. More bad news in the form of electricity and gas price increases, which will be applicable soon, will add to the woes of the British public. Add to that the fact that people whose low interest mortgages are expiring soon and who will need to pay higher interest rates on their homes and the British public could be looking at a very expensive future.

The ONS also said that the rising price of petrol had also contributed to the inflation when the prices were increased last month to 103.9p/liter. This has put on hold any plans by The Bank of England to cut down interest rates. While all of England reels under high interests and even higher expenses, people driving to work to London are now faced with a bigger dilemma. An announcement by London's Mayor Mr. Ken Livingstone that all fuel gulping vehicles such as the BMW 4x4 would have to cough up 25 pounds a day as congestion charges, while fuel sipping cars, like the Renault Clio or the Fiat Panda could get a 100 percent discount from this October onwards, has motorists fuming. He has specified that cars billowing out emissions of 226 gms/km or more will be charged 25 pounds per day and cars with 120 gms/km or less would be exempt from any congestion tax. This tax along with frequent fuel price hikes will have London motorists gasping for air especially if they own big fuel gulping vehicles. Many now argue that the congestion tax has turned into an environment tax, but the mayor is unmoved and even plans to include this issue into his re-election campaign. At present, approximately 1,50,000 vehicle owners are paying the 8-pound per day congestion tax, which means that many of them will now be paying triple the amount. The mayor states that this move will reduce congestion in London city since the congestion charge will force motorists to either shift to fuel-efficient cars or use public transport as a means of commuting to their workplace. The argument from motorists is that people who shift to fuel-efficient cars are anyway going to clog London roads and this move will in fact bring more cars into the city. With Chelsea and Kensington getting included in the congestion charge scheme, the transport commissioner Mr. Peter Hendy states that congestion has reduced in these zones by 25 per cent after imposition of the charge. But people with large families who own big vehicles or station wagons will have to go in for smaller fuel efficient cars if they want motoring into the city remain somewhat affordable.

So, increases from all the sides has left motorists in England and especially those near London, who need to commute to the City's heart everyday, in a jam from which it is now seems impossible to get out. Even small businesses are predicting a tough year ahead due to rises in their purchases coupled with higher fuel and freight rates. With many homeowners already reeling under higher food and re-mortgage rates, this attack on their mobility is sure to make them even more depressed in the future. This fits well into the mayors plan to make everybody cycle to work or use London's public transport system. But one thing seems clear. The battle for London's motorists to drive their vehicles without any restrictions has just begun.

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Article written by: Craig Parker - Make Money Expert



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