It’s almost been one week since the new Chancellor of the Exchequer, Rishi Sunak, released his first Budget.
With plenty to digest, we’ve put together a quick and easy summary highlighting what the budget means for motorists.
Fuel Duty: Freeze Continues
There were rumours floating around the ethos before the Chancellor announced the Budget that the nine-year-long freeze on fuel duty was set to thaw.
However, these proved to be ungrounded claims – with the freeze set to last for another year.
At present, the fuel duty is set to 58p per litre for both petrol and diesel – with liquid petroleum gas set at 32p per kilogram
Red Diesel: Tax Relief Ends
It was also declared that the tax relief on red diesel was set to end, with some exception – notably the fish farming, agriculture and non-commercial heating sectors.
At present, motorists purchasing red diesel pay 11p per litre of tax, this is significantly lower than the 58p tax for regular buyers.
Electric Vehicle Charging: Investment
£500m in funding is set to be invested over the coming five years as the Government aims to enhance the nation’s charging network for electric cars.
Overall the ultimate goal is that an electric car will always be within 30 miles of a rapid charging point.
Will the fund be enough to meet the increasing demand? Time will tell.
Plug-in Vehicle Grant: Extended
As well as investment in the charging network being announced, the Government has also decided to extend the current grant in place that exists for buyers of electric vehicles – which was set to end at the end of 2020. Now, the grant will run until 2023.
It’s not all good news, however, with the grant being cut by £500 to £3,000 as of March 12th 2020.
Potholes: Repair Fund
Potholes are the scourge of the roads in the UK.
As such, a lot of motorists were very keen to find out what, if anything was going to be announced in regards to repairs.
The Chancellor announced that a new pothole fund has been implemented, with £500 million per year set to be spent over the coming five years for repairs.
However, it has been estimated that around £9.8 billion is currently required to fix the country’s pothole problem in its entirety.
Once again, it will remain to be seen how much the current fund will stretch to meet the demands of the country.