2010 Budget Review

Today was the Chancellors Budget speech for the upcoming year. We have put together some highlights for you of the new Budget.

Fuel duty will rise by 3p - but this has been staggered throughout the year - 1p rise in April, then another 1p in October then a further penny in January. Original rumours were that the 3p duty rise will come in one go, which is now not the case
The scrappage scheme helped sales by 30% overall when it was running.
£100 million pounds has been put aside for repairs to our local roads and £285 million pounds for the motorway network including new hard shoulders.
From the 1st of April, members of public buying a new car will have to pay the new ‘showroom tax’. Brand new cars that have a carbon output of more than 165g/km will have to pay this showroom tax, with cars under being free-of-charge and with the most polluting car paying a maximum of £515.
£2 billion pounds will be invested into funding ‘green’ transport and energy products. There is already an example of this at the Sunderland Nissan factory where they will be building the new electric Leaf. Nissan comment that this would not have happened without government help.
50% income tax will come into effect for people earning more than £150,000 per annum as people earning over £100,000 will have their tax-free allowances removed after April.
Sin taxes have increased, 10% for cider, 2% on beer, wine and spirits. Further increases of 2% will rise from 2013. Tobacco duty rises by 1% from today, then a further 2% each year until 2014.

Overall the budget for this year will be a tough year for the motoring industry with the introduction of showroom tax and also the petrol increase, but on a positive note the fuel duty is being staggered and the cash injection for more ‘green’ cars will help the environment.

24-Mar-2010
« Back to articles