Today's emergency Budget is likely to hit motorists hard.
The Budget is being launched as the Conservative-Liberal coalition government puts plans in place to reduce the nation's £156 billion of debt.
Motorists are expected to be hit by a rise in the VAT rate from 17.5 to 20 per cent, raising the cost of new and used vehicles, servicing and fuel.
It has already been announced that the Department of Transport's budget will be reduced by £683 million. Exact details of where the cuts will be felt are unclear, but motorits are liklely to be hardest hits as road building and maintenance plans are shelved.
There is also speculation fuel tax will be raised, although the Conservatives campaigned for fairer fuel prices during the election. A future VED hike for the highest polluting vehicles has also been mooted.
Click back on autocar.co.uk later today to get confirmed details of announcements.
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Re: Budget 'to hit motorists hard'
Because this is Britain - and that means the only news we're going to get is gloom & doom for the motorist...as always.
Re: Budget 'to hit motorists hard'
I've read in a number of places this morning that the talked-about 2.5% VAT rise is 'far from certain'...
Re: Budget 'to hit motorists hard'
Why don't we wait and see before we panic.
My council have pretty much repaired all of our pot holes (caused loads of traffic in the process)
As far as VAT goes, the increase will make a small difference, such as £300 on a £15k car. Quite frankly Fords price increases have been far greater than that and they are still the top seller in the UK. Alternatively we can all keep things as they are and next year we can watch our whole country go to the dogs like Greece who's national debt spirals out of control due to the crippling interest charges on a nation that can't afford to pays its bills.