Currently reading: Budget - how it affects you
VAT rise; fuel duty held; insurance premium tax; reaction
Autocar
News
2 mins read
22 June 2010

Chancellor George Osborne has delivered today's emergency Budget, with a VAT rise from early 2011 the hardest hit on motorists' pockets.

The VAT rise to 20 per cent is from 4 January next year. The additional 2.5 per cent will raise the cost of new and used vehicles, servicing and fuel.

It means the list price of a £20,000 car will be £500 more. As an example, a new mid-spec Ford Focus will rise in list price by around £400 under the proposal.

Notably, VAT is added to the price of fuel after fuel tax is applied - so motorists are hit twice, paying a tax on a tax.

In addition, insurance premium tax will rise. The higher rate of insurance premium tax will rise from 17.5 to 20 per cent, while the standard rate will increase from 5 to 6 per cent. This levy will go on top of all car insurance, and has raised fears that more motorists will consider driving without insurance.

However, Osborne has delivered some good news for motorists, saying fuel duty will not rise above already planned rates for the time being.

Already established fuel duty rises were to add another 1p a litre on 1 October 2010 and then another 0.76p on 1 January 2011.

AA president Edmund King said: “We estimate that taking all the increases into account, motorists will, by January, be paying 4.63p a litre more for petrol and 4.68p a litre more for diesel than they are now."

Osbourne did make one concession to motorists, saying that there will be an examination of the impact of oil price rises on pump prices.

This could be the first step to establishing the fuel stabiliser plan that the Conservatives outlined pre-election, and which is designed to introduce variable tax rates according to oil prices, in a bid to keep fuel prices more stable.

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tannedbaldhead 30 June 2010

Re: Budget - live coverage

tannedbaldhead wrote:

mantaray wrote:
did anyone really expect a politician to keep his word?

Worse thing I have seen has been Clegg towing the pro Israel/US line on the murder of the peace protesters off the coast of Gaza. Listened to him squirm as the Radio 4 presenter quoted some pretty explicit critisism of past Israeli actions he made as leader of the Lib Dems when he thought he would never be near government.

You couldn't call this the post of someone unconcerned about the murderous actions of the IDF or someone ashamed of the UK's pathetic response now could you Nick?

Moral of the story is next unarmed civilian to get a gun off a soldier should slot him when you have chance. You're dead anyway so you might as well go out with a bang.

tannedbaldhead 23 June 2010

Re: Budget - live coverage

mantaray wrote:

tannedbaldhead wrote:
My brother drives a Disco III.
tannedbaldhead wrote:
maybe he'll start to enjoy driving again.

I can understand why he doesn't enjoy driving, and it has nothing to do with tax, lol

Sorry, couldn't resist!

You're quite right. I've driven his Disco along with a few other off roaders I've had to use at work (construction) and find they are slow witted, lacking in agility, fail to provide steering feedback and create the impression they may fall over when driven with enthusiasm. Fair play to those who have to use them for offroad work and towing but as a 100% road cars knocking about town most of the time one has to wonder why.

mantaray wrote:
did anyone really expect a politician to keep his word?

Worse thing I have seen has been Clegg towing the pro Israel/US line on the murder of the peace protesters off the coast of Gaza. Listened to him squirm as the Radio 4 presenter quoted some pretty explicit critisism of past Israeli actions he made as leader of the Lib Dems when he thought he would never be near government.
bomb 23 June 2010

Re: Budget - live coverage

nicksheele wrote:
anyone who voted

Voted Tory or Lib Dem? Or voted at all?

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