Budget day can mean a bumpy drive for the UK's 35 million motorists, with petrol prices, vehicle tax and spending on infrastructure all traditionally in the Chancellor's line of vision to boost the nation's coffers.
This time, however, it was a relatively smooth ride for drivers, as Jeremy Hunt concentrated on getting the economy moving by encouraging people back into the workplace and making it easier for the disabled, parents and those on benefits to do so. There were no nasty shocks but two key policies are set to impact drivers across Britain.
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.
Read more: Car insurance: 10 ways you can be caught out without realising
Here's what's round the corner for drivers after the Budget:
Fuel Duty
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. The announcement was welcomed by motoring groups and campaigners, who have been lobbying for the fuel cut to remain.
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 said: "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
Motorists driven mad by potholes on the roads will welcome the £200m pledge to help local councils fix them announced by the Chancellor yesterday.
Nearly half of drivers have to swerve to avoid the road menace every day, according to a recent survey, and just under half of motorists reported damaging their car by hitting a pothole, the poll by market research company Consumer Intelligence found. Of those, one in five said they had incurred repair bills of more than £100.
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, saying: "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)
Drivers did not get away completely scot-free in the Budget, as the announcement that car tax will rise from next month was a bitter blow for families in the cost of living crisis.
Vehicle Excise Duty is going up by 10.1% from April 1 for cars, vans and motorcyclists, although rates for the haulage sector will stay the same. The exact amount your tax will go up from April 1 depends on the type of vehicle you own, as you pay different amounts based on its weight and when you registered your vehicle. The current rates are here and will all increase by 10.1% next month.
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