Wednesday 22nd November saw Chancellor of the Exchequer announce his Autumn budget speech to the House of Commons.
The Budget is the Government’s yearly announcement about how it will use nation’s money to fund services such as schools, the NHS, policing, housing and more. Taxpayers provide money for the Government, which then translates into the budget’s funding. Motoring taxes such as VAT, charged at the current rate of 20%, Vehicle Excise Duty (road tax), and fuel duty are some of the types of funding coming from vehicle owners that the budget utilises.
Trust My Garage believes that keeping you in the loop as a vehicle owner is of vital importance, so we’ve created a breakdown on how the changes announced in the budget could affect the UK’s motorists and the future of driving.
After much speculation, fuel duty has remained frozen for another year – meaning drivers of diesel vehicles will not be subject to increased costs for their fuel.
However, vehicle excise duty for diesel cars that do not meet the latest emission standards will rise by one band in April 2018 to crack down on the increasing levels of air pollution – so you could be paying anything from £15 to £500 more a year depending on how polluting your diesel vehicle is. As well as this, existing diesel supplements in company car tax will rise by 1%.
The Chancellor also reassured “white van men, and women” that company taxes on diesel vehicles will not hit them – The changes to company car tax for diesel vehicles are designed for cars only.
As a benefit to motorists, Mr Hammond unveiled extra funding and tax incentives for electric car drivers in order to initiate further take up of electric vehicles (EVs). An extra £100 million is set to go towards helping people buy battery electric cars. The Government has also pledged to make sure all new homes are built with the right cables for electric car charge points.
In addition to the extra investments, electric cars charged at work will not incur benefit in kind, meaning they aren’t subject to taxation as fossil fuel-run vehicles are. This should encourage businesses to install charging points on their premises for employees – making it easier to charge your car at a convenient time.
The Government is also investing more funding into a cohesive electric vehicle charging infrastructure, once again ensuring you can stay charged up and ready to go no matter where you are if you choose to run an EV.
Thinking even further ahead, the Government has pledged to devote funding to driverless cars, considering them as the ‘next step’ after electric vehicles. The Chancellor announced that the UK will set out rules so that self-driving cars can be tested without a safety operator.
Overall, the latest budget has been of mixed quality for motorists. Fuel duty prices have unexpectedly been frozen again to save you money, and the investment into electric vehicles will make it easier than ever to make the switch to a greener car and reduce air pollution for the next generation. However, the rise in costs for diesel vehicles is still set to affect many thousands of drivers across the UK.
No matter what the budget – be it yours or the UK’s – Trust My Garage and the Car Repair Plan are here to help you ensure your car is running at its best! If you’re looking for any kind of service or repair, you can use our handy Find a Garage map to locate your nearest Chartered Trading Standards Institute (CTSI) code of conduct approved member.
For more information about Trust My Garage you can also visit our website at www.TrustMyGarage.co.uk.
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