Budget evokes mixed feelings in motor industry

Many motor industry responses have come in regarding the Chancellor’s Budget yesterday, especially surrounding the fuel duty freeze and the pledge of £200million for pothole repair. Not surprising is the mixed feelings in hearing of a freeze for September’s planned 1.6p per litre rise in fuel duty. It means that there will be no rise in fuel duty prior to the 2015 general election. A relief for us motorists, but for some it comes as a resounding disappointment that there are no plans to go a step further and reduce it.

James Hookham, FTA Managing Director of Policy and Communications said: “The Chancellor has kept his promise to freeze fuel duty and industry will be £187 million a year better off for that, but he missed the opportunity to stimulate the economy further by reducing fuel duty and putting around £690 million into the pockets of families and British business. This could have given a further stimulus to the economy and locked in the positive growth already achieved.”

To read more of the FTA's official response to the Budget, please click here.

 

Here are some more motoring highlights from the Budget Statement of Chancellor of the Exchequer George Osborne:

• Van benefit charge2014/15 - the van benefit-in-kind tax charge will increase from £3,000 in 2013/14 to £3,090 in 2014/15,


• Van fuel benefit charge 2014/15 - from 6 April, 2014 the van fuel benefit charge multiplier will increase from £564 to £581.


• Vehicle Excise Duty - from 1 April, 2014 VED rates will increase in line with RPI. The Government will freeze the VED rates for Euro IV and V light goods vehicles in 2014/15. The Government will introduce a rolling 40 year VED exemption for classic vehicles from 1 April, 2014. It means that vehicles constructed 40 or more years ago will be exempt from VED on an automatic rolling basis on 1 April each year.


• Company car tax - the appropriate percentage of list price subject to tax will increase by two percentage points for cars emitting more than 75 g/km of CO2, to a maximum of 37%, in 2017/18 and 2018/19. The Government remains committed to reviewing incentives for Ultra Low Emission Vehicles in light of market developments at Budget 2016, to inform decisions on company car tax from 2020/21 onwards.


• Car fuel benefit charge 2014/15 - employees who are in receipt of company-funded fuel used privately will see their benefit-in-kind tax bills rise from April 6, 2014. The Chancellor has announced that the fuel benefit charge multiplier for company cars will increase from £21,100 in 2013/14 to £21,700 in 2014/15.

What do you think about the Budget announcement in regards to your business and motoring needs? Share your views on the blog or via Twitter.