British motorists are being hit with a new cost of living levy that could be a significant hit to the economy.
The levy, which will take effect from April 1, will be a tax on the cost of cars, meaning drivers will be asked to pay a fee of between £100 and £200.
It is part of the government’s drive to reduce the amount of government expenditure that is passed on to British households.
But the levy has also provoked outrage from businesses and the car industry.
Car companies have also been criticised by some who believe it could lead to a shift in the way carmakers sell cars.
British carmakers have faced increasing competition from other countries in Europe and Asia and are struggling to compete.
“The levy on car fuel will hit the sector hardest and will be an additional expense for consumers,” said Richard Harrington, a senior analyst at the consumer group Which?
“It will make the UK a less attractive place for businesses to invest and drive growth in the UK economy.”
The government has been trying to improve the economy since the financial crisis of 2008.
Its stimulus package, which included cuts to the public sector, unemployment benefits and the sale of the national lottery, has helped to lift growth to its highest level in decades.
In December, the government announced that it would boost the personal allowance to £11,400 from £10,000 and introduce a universal credit to give households more money to spend on food, clothing and other essentials.
However, the levy is not expected to be a major part of any major policy changes in the near future.
Britain is currently on track to surpass the eurozone’s average of £7,600 in fuel prices.