Fuel duty and other budget news
Motorists up and down the country was awaiting the Chancellor’s budget for 2011 with baited breath after the recent hike in petrol prices caused by global instability and ever increasing fuel duties. In the current economic climate car drivers could ill afford more bad news. Now after the budget has been revealed, the mood is a quite sombre one.
The previously announced 4p fuel tax increase has now been scrapped and the budget set out an immediate fuel duty cut by a penny per litre. That means that fuel duty will be cut by a penny, from 58.95p, from March 23. Whether the price at the pump will actually be reduced however remains to be seen as some forecourts will probably keep the increase for themselves. According to some motorists certain forecourts raised their prices prior to the budget announcement meaning the decrease in one penny won’t benefit the motorists filling up at all.
Other budget news which might affect some motorists are the company car tax rates and the approved mileage rates. The company car tax rates will increase with 1 % for cars emitting between 95g/km and 220 g/km from April 2013. And the maximum approved mileage rates for using your private car for business will increase from 40p to 45 p per mile from April 6 2011.
In addition to this the government has set aside £100 million for councils to repair potholes, but for some unlucky motorists this will probably be too late.
So whether you’re a Ford Mondeo driver in Hampshire or drive a new Land Rover in Kent for some of you the budget might have brought good news, for others owning and using a vehicle will still be considered a costly affair.
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