How did the 2015 UK budget affect Car drivers?
Chancellor George Osborne recently revealed the elimination of increases in fuel duty in the 2015 budget and claimed that these accumulated tax freezes could save roughly 30 million motorists in the capital £10 every time they filled up at the pumps. Motorists that reside in rural locations might be able to take advantage of a 5p per litre cut when a new countryside tax relief comes into effect on 1 April, 2015. Adding to this, the chancellor also revealed some more investment in autonomous vehicles, and plans by the government to lower the Severn road crossing toll when it comes into public ownership in 2018.
Fuel Duty:
Osborne froze the fuel duty in an effort to eliminate the proposed 0.54p-per-litre hike in duty, due in September, 2015. The chancellor states that this move was made so that the savings from the falling oil prices is enjoyed by everyone and it would save motorists upwards of £600 per year by 2016.
Remote areas will enjoy cheaper Petrol:
The government understands that motorists in rural areas are sometimes faced with higher prices at the pump compared to other areas in the UK, and with a complete approval from the Council of the European Union is able to pass on these fuel savings to seventeen other areas in the country. This will make it possible for retailers in these eligible areas to get a discounted 5p per liter fuel duty discount.
Low Oil Prices – Impact on UK Drivers:
According to the budget document, the savings from low fuel prices has helped support households, which translates to £11 in savings when filling up. Adding to this, the government confirmed that it will continue to monitor the oil industry to make sure that the savings from oil prices are enjoyed by consumers as well.
Road Tax:
The budget also indicates that owing to annual inflation in 2015, the VED (Vehicle Excise Duty for motorcycles, vans, cars and motorcycle trade licenses will be increased by the RPI.
Investment in Roads:
An update in the budget with regards to road spending states that £3.4 billion worth of 15 major schemes will be completed and another £2.3bn in 16 other schemes in progress in an effort to improve the Strategic Road Network.
Classic Car Tax:
Good news for classic cars owners, the VED tax exemption can be enjoyed for all cars registered before 1st January, 1976. Not to mention cheaper car insurance too.
Autonomous Cars Investment:
The government plans to invest £100 million in autonomous car projects in the country, and is looking forward to making the capital an excellent hub for driverless vehicles.
Company Car Tax:
The new budget indicates that the Ultra Low Emission Vehicle rates for 2019-20 will increase slowly than previously revealed, and the rates for all other vehicles will see a hike in three percentage points.
Electric Vehicles Support:
In February, 2015, the government announced the introduction of an ultra-low emission vehicle (ULEV) prize worth £10 million, with the winner set to be revealed in the summer of 2015.