Motoring Facts in the 2014 Budget
The Chancellor, George Osborne has confirmed in the 2014 Budget that the fuel duty will be frozen for motorists. He also announced that a new £1 coin will take over the current one and will cost councils million. The Chancellor also announced an extra £200 million fund for pothole repairs. He also said low CO2 emission vehicles will be rewarded with further discounts.
Fuel Duty Freeze
You may remember that a planned September 2014 fuel duty rise was scrapped in the Autumn Statement in 2013 and the Chancellor confirmed duty would be frozen until Spring 2015, again, in the 2014 Budget. The news comes as a sigh of relief for motorists, who have been badly affected by rise in petrol prices to as much as 138.32ppl in February 2013. Osborne claimed in the 2014 Budget that the latest freeze meant motorists would be paying 20p less than under the previous Government.
New £1 Coin
The Chancellor’s biggest announcement during the Budget statement was a new 12-sided £1 coin. While not directly affecting drivers, it will mean all parking meters and machines will have to be replaced in car parks. This means around 100,000 machines in the UK will have to replace their machines and this will cost at least £50m to local authorities and private parking firms, according to the British Parking Association. The Royal Mint says the new coin will be the safest in the world.
Funds for Potholes on Roads
Winter floods caused lots of potholes and the budget sees an allocation of £200m to repair these potholes. The current estimate for repairs is £400 million, on top of the £10.5 billion repair backlog that already exists.
Low CO2 Emissions get Rewarded
VED rates for cars, motorcycles and the main rates for vans will increase by inflation from April 2014. A rolling 40 year Vehicle Excise Duty (VED) exemption was also introduced for classic vehicles following last year’s 1974 exemption. Other motoring announcements came in the form of an extension on the discount for ultra low-emission vehicles and a two per cent tax on company cars with higher CO2 emissions. The M4 in Wales also received funding along with £270m for the Mersey Gateway bridge.
Voice your opinion on the Budget? What do you think he should have announced?
