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Britain’s motorists escaped significant tax hikes in today’s Pre-Budget Report.

An additional 2p per litre fuel duty will be imposed from 1 December. But VAT will be reduced by 2.5 per cent to 15 per cent until the end of 2009, so fuel prices should remain unchanged.

The Government claims that new Vehicle Excise Duty (VED) bands (which run from A to M) will mean that ‘no driver in any given band will pay more than £5 extra in 2009’.

However, the Government reversed the most ...Read the full article

"Too late Darling!"

So, hang on.

The tax disc I've just paid £400 for is about to come down in price to £225 if I've understood this correctly?!?!?

If that is the case, then am I going to get a rebate on this?

Darling, you are truly a T#*T!

It will also knock nearly £500 of the new car I am picking up on Dec 1st according to my dealer this morning.  What a Darling!!!!

Autocar:

Britain’s motorists escaped significant tax hikes in today’s Pre-Budget Report.

An additional 2p per litre fuel duty will be imposed from 1 December. But VAT will be reduced by 2.5 per cent to 15 per cent until the end of 2009, so fuel prices should remain unchanged.

 Interesting spin...

As of Ocotber last year Fuel duty sat at £0.5035 per litre. Darling announced the 2p rise to come in affect by Monday, so we are now up at £0.5235 per litre.

Then if you look carefully 4 months later on 1st April (who says the government doesn't have a perverse sense of humour) he will add another 1.84p rasing the duty up to £0.5419.

As the government would say: "Mr speaker, this raises the amount of fuel duty up 7.6% in real terms. Meaning that we will actually more than recoup the 2.5% reduction in VAT."

 If you aren't going to buy a car, especially as the government has just dried up all available credit (LOL), then where exactly are you not being hit...

stevew1:

It will also knock nearly £500 of the new car I am picking up on Dec 1st according to my dealer this morning.  What a Darling!!!!

Steve, if I was buying a £20,000 before-VAT-price car today, no matter what make or model, I'd be looking for a darn sight more than £500 off. I'd be expecting a minimum 10% or £2,000 and then commence haggling.

The temporary VAT reduction is neither here nor there. In a falling market, off at least 25% year-on-year, deflation rules and the customer is king. Price reductions of 10-20% should be the norm with 30-50% in the case of unwanted product.

horseandcart:

Steve, if I was buying a £20,000 before-VAT-price car today, no matter what make or model, I'd be looking for a darn sight more than £500 off.

I have to agree. Dont let the stealers get away with just a £500 discount - this is presuming that you haven't already negotiated a suitable discount and the £500 is just an added bonus?

Some more details on the Make/Model/Price would be useful...