UK's emergency Budget 2010: how it affects motorists

Chancellor George Osborne will make the emergency spending cuts on Tuesday 22 June By Tim Pollard Motoring Issues 21 June 2010 09:51 The new UK Government's emergency Budget tomorrow is likely to announce a raft of spending cuts and tax rises bound to affect motorists.  The new Conservative-Liberal coalition government is taking the unusual step of holding an emergency summer Budget to reduce the national deficit, which stood at £156bn in 2009-10. The senior Cabinet members signed off the details of the Budget on Friday, but the details won't be confirmed until Tuesday 22 June 2010.Here's our preview of what to expect if you're a car owner:VAT riseMost pundits agree that the rate of value added tax will rise from today's 17.5%. If raised to 20% – the upper limit expected – it could raise an extra £11 billion a year for Government coffers.

Renault Eolab Concept

Renault has bucked the trend of rather uninspiring Paris Motor Show previews with the Eolab. This B-segment-sized car that has been designed to a brief that states it must return fuel economy of 2l/100km (118mpg US/141mpg UK), and that all of its major technical innovations must be production-feasible by the year 2020. The Eolab is actually two cars – the Eolab prototype, which the engineering team has signed off as capable of 1l/100km (235mpg US/282mpg UK), and the Eolab Concept, which was overseen by the design team.

GM sued for not recalling nonpolice Chevrolet Impalas to fix spindle rods

General Motors has been sued by the owner of a Chevrolet Impala who claims the company recalled police versions of the sedan to fix a tire-wear issue but did not recall civilian Impalas for the same problem. According to the suit, filed in Detroit, GM issued a recall for police Impalas in 2008 for faulty spindle rods, which misaligned the rear wheels and led to premature tire wear. GM told dealers to replace the spindle rods, realign the rear wheels and replace the tires.