How the budget 2012 will affect car drivers. What does George Osborne's policies mean for motorists
21 March 2012

Fuel duty will not increase as a result of today's Budget announcement, but duty will still increase in plans set out in the Chancellor's 2011 Autumn Statement.

The plans announced last year saw a fuel duty increase originally planned for 1 January 2012 deferred to 1 August 2012. George Osborne's announcement means this still stands, meaning fuel duty will increase by 3.02 pence per litre.

Above inflationary increases to fuel duty will only return if oil drops below £45 per barrel on a sustained basis.

Vehicle excise duty will increase only by the rate of inflation. VED is frozen for road hauliers.

Company car tax bands will be changed to promote the use of more environmentally-friendly vehicles. The government will extend the 100 per cent first year capital allowance for low emission business cars, reduce the CO2 threshold for the main capital allowance rates and increase the percentage list price of company cars subject to tax.

However, it was also announced that ultra-low emission vehicles will no longer be exempt from company car tax from 2015. Owners of electric company cars will have to pay 13 per cent of the vehicle's value in tax, rising to 15 per cent in 2016/17.

In addition, the company car tax rate for vehicles emitting more than 75g/km of CO2 will increase by one per cent in 2014/15, and two per cent in 2015/16 and 2016/17. The maximum company car tax rate will also increase from 35 per cent to 37 per cent in 2015/16.

The treasury says the 3 per cent diesel penalty will be removed from company car tax from 2016/17.

Mr Osborne said he wants to increase the value of UK exports to £1 trillion this decade, and help will be made available to smaller firms. No commitment was announced for additional investment in the car industry, although he said: "This Government also supports research and development here in Britain instead of abroad".

The AA's president, Edmund King slammed the fuel duty announcement. He said: "At a time of record prices at the pumps the August increase in duty is a budget blow-out which will force drivers off the road and could bring a summer of discontent for many.

"We have heard much about tax allowances but the increase in fuel duty makes no allowance for car-dependent, rural and disabled drivers. Only last week the Prime Minister told American students that UK fuel prices would make them “faint”, yet the Government seems intent on inflicting more pain for no gain on drivers. Ironically such a hike in duty doesn’t necessarily help government finances as people will cut spending at the pumps and in shops, and it could fuel inflation."

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19

21 March 2012

[quote Autocar]Fuel duty will not increase as a result of today's Budget announcement, but duty will still increase in plans set out in the Chancellor's 2011 Autumn Statement. He said he hopes to reduce the annual cost of motoring by £4.5bn.
[/quote]

So it is going up then. *facepalm*

And how does he expect to reduce the annual cost of motoring then? What with tax on fuel going up and road tax going up? Insurance of course will be going up .... what else is there that he can do to reduce the cost of motoring then?

Are tyres going to be given away free with every hip replacement?

Is he going to stop depreciation by ensuring that the government buys all 2nd hand motors at the price you bought the car for?

What a load of bull s h i t.

21 March 2012

We should all fight the increase, by driving more economically. Smoother driving, better anticipation of the situation ahead, and just by slowing down, will save us all ££'s All us Autocar drivers/enthusiasts know this already, but it surprises me the amount of motorists with diesel turbo's who have to drive constantly on boost! Its a waste, save it!

21 March 2012

[quote simon_ingram]We should all fight the increase, by driving more economically. Smoother driving, better anticipation of the situation ahead, and just by slowing down, will save us all ££'s[/quote] What a load of rubbish! I can save you even more money by driving only half the distance! That's not fighting the increase, That's giving in!

21 March 2012

[quote Cheltenhamshire]

[quote Autocar]Fuel duty will not increase as a result of today's Budget announcement, but duty will still increase in plans set out in the Chancellor's 2011 Autumn Statement. He said he hopes to reduce the annual cost of motoring by £4.5bn.
[/quote]

So it is going up then. *facepalm*

[/quote]Completely idiotic. Osbourne has completely IGNORED all the evidence presented to him by FairFuelUK, who have worked extremely hard in campaigning to have it reduced, or the scheduled rise removed. He's a complete idiot and proves that they are NOT in any way here to help the motorist, as they suggested in the first place. They all get chauffeured about so they clearly don't understand the British motorist. Arrogant and ignorant together. I'm furious.

"The creative adult is the child who survived."

21 March 2012

[quote simon_ingram]We should all fight the increase, by driving more economically. Smoother driving, better anticipation of the situation ahead, and just by slowing down, will save us all ££'s All us Autocar drivers/enthusiasts know this already[/quote]That's not fighting the increase - fighting the increase is doing what FairFuelUK have been doing the past year or so. Most of us are driving more economically anyway - still doesn't make the fuel any cheaper! I can't believe how arrogant the Government are. I really can't.

"The creative adult is the child who survived."

21 March 2012

Perhaps he will grudgingly waive it come the time. It will be much closer to the general election, so that he will be able to more easily flag it as a saving that HE has given us.

21 March 2012

Apparently the fuel duty will increase the average tank fill by £1.90.

Back in 1973 when I passed my test, it cost about £2.00 for a 6 gallon (27 litre) tank fill for my Mini 1275GT

21 March 2012

Fuel tax is a shambles.

The cost of urban accommodation is probably going to push me to a rural area quite soon. That'll mean the Accord coupe will have to go (automatic and reliable, but 20mpg wont be sustainable).

The unfortunate truth though is that oil is a finite resource that is running out. What little is left is being fought for or extracted through risky processes. Ideally the gov should be investing in nuclear tech, hydrogen / battery fuel cell generators and stations, and greater incentives for the production and purchase of hydrogen fuel cell / battery pack vehicles.

21 March 2012

They are having the desired impact. Even as a student I used to drive 12k a year, a year in practice saw that rise to 22k a year but now I am student again I have reduced this to less than 3k - I simply cannot afford to drive. This means I spend more locally - which is fine as I have a great range of shops (Jesmond, Newcastle) but I also put much than I like into the coffers of Tesco because of this.

21 March 2012

The higher fuel costs are also hitting some slightly older second hand car prices - have been looking at an SLK350 that is just 4 years old and only done 13000, its comparitvely £3k cheaper than last year (taking all factors into account) and the main dealer was desperate to shift it!! Openly admitted no one wants big engines in the second hand market, but as I only do a small mileage in the "second" car it was very tempting!

But in the end, have kept the Alfa...

To live is to drive

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