George Osborne’s budget was delivered, including the introduction of ‘lifetime’ ISAs and a new sugar tax. While the soft drinks industry absorbs this, did Mr Osborne give any sweeteners to motorists?
The answer is yes – and no. As with every budget, there are motoring wins and losses.
The winners could however be the manufacturers who are clever in the technology they used and the equipment like for example the Tapping Machines sourced from companies like https://www.cotswold-machinery-sales.co.uk/roscamat/pneumatic-tapping-machines/. This helps productivity and quality so can really benefit business.
Fuel duty frozen
For the sixth year in a row, fuel duty was frozen. This was welcome news for our pockets and equates to a saving of £75 a year; however, it could be argued that as the current price of oil has plummeted, the government could have passed some of these savings on to the motorist. After all, the RAC has estimated that the government will receive over £27bn through fuel duty alone.
We will see an increase applied to insurance premium tax (IPT). You would be forgiven for thinking that IPT would be left alone after last year’s hike from 6.5% to 9.5%; instead, it has risen to 10%. This means insurance premiums will increase, with the AA stating that this could be by as much as £50.
Vehicle excise duty
There was good news for classic car enthusiasts from April 2017, vehicle excise duty (VED) exemption worked on a ‘rolling’ 40-year rule, meaning that any car celebrating its 40th birthday before January 2017 will be VED exempt.
The VED banding system for cars registered on or after 1 April 2017 also changed. If you were planning a new car purchase, you should have checked the banding system to see whether you would be better off buying before or after April 2017. It could make financial sense to get your car registered before any changes are implemented.
The North could be seen as a winner, with the government pledging £75m to improve road links, including the A66 and A69.
George Osborne has promised to allocate £50m across councils in England to fill potholes; however, this might not make it to a pothole near you, as it would cost billions to repair all our roads.
Let’s hope the next budget isn’t bumpy for motorists.