The annual budget can be confusing and there is a lot of information to take in, especially when it comes to working out how it will affect your everyday life. There was a lot of motoring points made when the spring budget was announced earlier this month. We are going to take you through exactly what the plans are for the UK automotive industry and road network and how it could affect you.
Reducing Urban Road Congestion
The Budget earmarked £690 million that councils across England can bid for. The aim is for the money to be used in local town/city centres in a bid to reduced congestion and air pollution. The money will help improve local road networks and in time, reduce journey times for motorists. The Budget didn’t go into detail about how much each council will receive but it is understood that individual councils will bid on how much they need to improve their local network.
Freeze on Fuel Duty
Fuel duty has been frozen for the seventh successive year, and will remain at 57.95p. As a car driver this means you will save on average £130 a year, while van drivers save around £350 a year.
Vehicle Excise Duty (VED)
From the 1st April any new vehicles registered fall under a new VED scheme, inevitably costing you more money. The first year’s VED will still be calculated on a vehicle’s CO2 emissions, payments are split into 13 bands. If your car has 0g/km CO2 emissions it will be exempt from paying tax. After a year, zero-emission cars remain exempt, while all other vehicles move to a standard £140 flat rate, regardless of the level of CO2 emissions.
Something not mentioned in the spring Budget was the proposed diesel scrappage scheme. There was talk of higher tax for diesel vehicles but nothing has yet been confirmed and it is expected motorists will hear more about it later in the year.