Want to know how the emergency budget will affect you as a motorist? Here are the main points:
VAT Increase
Vat is going up from 17.5% to 20% from 4th January 2011. So if you’re planning to buy a new car next year, whether you’re after a new Audi or a new Skoda, unless the manufacturer holds its prices, it’s likely you’ll be paying a few hundred quid more.
Insurance Tax Rises
Car Insurance is going up too – the standard rate of Insurance Premium Tax will increase from 5% to 6% and the higher rate will go up from 17.5% to 20%.
Fuel Prices
Although this budget stated no new rises on fuel duty, the previously planned 1p rise on 1st October and 0.76p on 1st January 2011 are still going ahead.
Company Car Tax Increases
Vehicles with higher emissions will be further penalised in this tax. From April next year, the 15% tax band will be lowered by 5g/km so that it includes cars putting out between 121 and 129g/km of CO2. Above that tax increases by 1% per 5g/km up to a maximum of 35%. Discounts on higher emitting hybrid cars such as the Lexus RX400h will also be removed.
Speed Cameras
The funding of speed cameras is shifting from central to local government, meaning local authorities will have to meet the costs themselves. This may mean no changes, or it could mean fewer cameras but more pressure for each one to pay for themselves.
