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Glasgow Live
Glasgow Live
National
Catherine Furze & Sophie Buchan

Glasgow drivers set to see three changes after Budget announcement - including car tax rise

This month changes are coming into force for millions of drivers across the UK with upcoming changes set to affect approximately 35 million people.

Budget day can a bumpy time for those behind the wheel however with Jeremy Hunt concentrating on getting the economy back to where it should be, it's some good news for those who own a vehicle.

And thankfully, as reported by Chronicle Live, there were no nasty shocks however there are two key policies which are set to impact drivers across Britain.

READ MORE: Glasgow woman hoping to 'step outside comfort zone' to compete in BBC show

Last year, there were a raft of updates to fuel duty, electronic vehicle (EV) taxation, company car taxation, VAT on EV charge points, and Insurance Premium Tax, but this year, the Chancellor focused on funding for potholes, and continuing the freeze of fuel duty.

So how does this affect drivers? Here's what's around the corner for drivers after the Budget update.

Changes coming into force or drivers in the UK

Fuel Duty

In good news to motoring groups and campaigners, who have been lobbying for the fuel cut to remain, the planned 11p rise in fuel duty was cancelled with last year’s 5p cut retained for another twelve months, which the Government says will save the average motorist £100 a year.

RAC head of roads policy Nicholas Lyes said: “We welcome the Government’s decision to keep the 5p fuel duty cut in place for another 12 months.

“The cut has given drivers some much-needed relief in what has been the most torrid year ever at the pumps, with price records being broken even after duty was cut. Given the importance of driving for consumers and businesses, duty should be kept low to help fight inflation."

Howard Cox, founder of pressure group FairFuelUK added: "I am delighted our intense campaigning and lobbying with so many in-touch MPs has been highly effective in convincing the Chancellor to keep fuel duty frozen. The longest-ever consumer tax levy freeze thankfully continues. It would be churlish not to warmly thank Mr Hunt for this welcome news, even though drivers actually wanted a cut in this regressive tax."

Potholes

Potholes are becoming an issue for drivers everywhere - even in Glasgow. As reported by Glasgow Live, over the last three years motorists have made 3,852 pothole damage claims valued at £337,721, however, Glasgow City Council have paid out on just 103 of the reports submitted.

But in good news, a £200m pledge to help local councils fix them announced by the Chancellor.

Jeremy Hunt's pledge means around four million more holes will be filled in, according to the Daily Mail, and the money is earmarked for town halls, meaning residential streets, country lanes and smaller B and C roads will benefit.

Edmund King, president of the AA, welcomed the announcement, said: "This £200m pothole bonus is a welcome contribution in the short term to help fill the plague of potholes which is blighting drivers, motorcyclists, cyclists and pedestrians,"

But while Jonathan White, legal and compliance director for personal injury company National Accident Helpline, welcomed the extra cash, he said it didn't go far enough.

"While the Government’s extra funding for local road maintenance is welcome, it is unlikely to resolve Britain’s pothole pandemic," he said.

"British roads are littered with potholes, causing grave concerns over safety. The funding is certainly a step in the right direction, but it doesn’t go far enough. It will take more than a one-off bonus to guarantee our roads are maintained to a standard that ensures lasting safety for all road users.

Vehicle Excise Duty (tax)

Despite some good news, it was announced that car tax will rise from next month on April 1, 2023.

Vehicle Excise Duty (VED) is going up by 10.1 per cent from April 1 for cars, vans and motorcyclists, although rates for the haulage sector will stay the same.

The amount your tax will go up from will vary depending on the vehicle you own, as you pay different amounts based on its weight and when you registered your vehicle. The current rates are here.

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