12 Mar Budget 2020: What Does It Mean For Drivers?
On Wednesday 11th of March 2020, Chancellor of the Exchequer Rishi Sunak has unveiled his first Budget.
Here’s what the budget means for drivers:
- Freeze on Fuel Duty
- Electric Car Plugin Grant has been extended for another year
- Car Tax – ‘Premium Car Tax’ introduced which means if the list price for a new vehicle is over £40k, you’ll have to pay a £320 annual supplement for 5 years
- Electric Charging Infrastructure – £500 million fund announced to grow network
- £27Bn on Road Investment
- Dualling of the A55 Trans-Pennine
- New dual carriageway and tunnel on the A303
- Pothole Fund – £2.5Bn over 5 years
- Red Diesel – rebate removed from 2023
Nicholas Lyes, the RAC’s head of policy said:
“The Chancellor has chosen to give a boost to drivers of today’s vehicles with a fuel duty freeze while also investing in tomorrow.
We welcome the freeze in fuel duty, which will be a relief to drivers. While the Chancellor might have been tempted to increase duty.
The reality is that for millions this would have simply increased their everyday driving costs and done nothing to encourage them to switch to cleaner vehicles.
We also welcome a commitment to extend the plug-in car grant, which will provide a real long-term boost for drivers who plan on changing their vehicle in the next couple of years but find the current up-front costs prohibitive.”
Gerry Keaney, chief executive of the BVRLA, said:
“Tackling road transport emissions and improving air quality is top of the agenda for government, industry and society.
The Plug in Car Grant and VED measures outlined today will play a massive role in making EVs more affordable for thousands upon thousands of businesses and drivers across the UK.
Having a roadmap for the future of Company Car Tax up to 2025 removes the uncertainty that we know stifles business decisions.
With an average fleet replacement cycle of 1-3 years, the vehicle rental and leasing industry is ideally placed to drive rapid EV-transition in the UK.
We will use these fiscal incentives to continue to lead the way in driving the shift towards cleaner road transport.”
For the official government release click here
To find out more about our range of fuel cards click here