Currently reading: Budget 2013: The important changes
What George Osborne's 2013 budget means for motorists

George Osborne has announced that the 3p per litre rise in fuel duty, scheduled for September, will be scrapped.

The Government has also extended the cut-off date for road tax exemption, for classic cars, by one year. From 1 April 2014 vehicles manufactured before 1 January 1974 will be exempt from paying road tax.

In order to reduce administration costs, SORN - Statutory Off Road Notifications - will now last indefinitely and not require renewing every year. The grace period for not displaying a tax disc, once you have paid for it, has additionally been extended to 14 days. 

There's good news for company car drivers too. Benefit-in-Kind tax will be 5 per cent of the P11D value of electric vehicles, from April 2015, instead of the 13 per cent previously announced.

The planned increase in fuel duty would have further pushed up the continually escalating cost of motoring.

Fuel for an average diesel car, travelling 10,000 miles a year and returning 40mpg, currently costs approximately £1,645 a year.

If the fuel duty rise had come in to play, that figure would have risen to £1,679. Motorists would have consequently had to pay an additional £34 a year.

The abolishment of the plan means that fuel duty will have been frozen for around three and a half years. The Government stated that "Pump prices are 13p per litre lower from April 2013 than under previously announced plans."

Chancellor George Osborne thanked Harlow MP, Robert Halfon, for campaigning to abolish the fuel duty escalator.

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turbinecol 21 March 2013

a few classics

So, a few M-Reg classics will slip in to the exemption now (friend will be pleased with his Mk1 Granada).

 Unlikely to be a rolling date though, and Labour will quickly nip it in the bud anyway when they get back in power in 2015.

madmac 21 March 2013

Thank you

Have been lurking for years and reading Autocar for 50 years+  but just recently signed up and nice to have such decent feedback and discourse with obvious fellow enthusiasts close to one's own heart,though sure in the future will have  a few differences of opinion,but thank you all !!

supertax 20 March 2013

Hopefully the classic car

Hopefully the classic car exeption will increase year on year.