The Department for Transport and the Ministry of Justice has announced the introduction of a range of new measures ministers hope will reduce the annual running costs of vehicles across the UK, both for individuals and firms.

Justice Secretary Chris Grayling commented: "We are turning the tide on the compensation culture and helping hard working people by tackling high insurance premiums and other motoring costs."

Measures put forward by the government include the creation of an independent medical panel for whiplash victims to help assuage the explosion in whiplash claims that have seen car insurance premiums rise considerably in recent years.

In addition, the new measures include a review of driving test fees, action on motorway fuel prices and a freezing of the statutory price of vehicle MOTs until 2015 at the current £54.85 – potentially saving UK motorists a combined £50 million in further costs.

It follows the publication of data from the AA highlighting how average premiums have already fallen by 12 per cent in the last year, but the government is keen to do more.

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