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March 12, 2008

More tax, Darling?

In the biggest political shock since that disturbing John Major/Edwina Currie news, Chancellor Alistair Darling has just delivered his 'car-friendly' budget, scrapping tax on big V8s and announcing free petrol for over-17s.

Not really. But today's Budget wasn't quite as bad as it might have been for motorists. Darling announced that the proposed two pence increase in fuel duty would be postponed until October this year, following a 19 per cent rise in petrol prices over the past 12 months.

However, from 2010, fuel duty will rise by half a pence per litre in real terms.

Darling also revealed an overhaul of the vehicle excise duty, due to start in 2009. Beyond 2010, the lowest-polluting cars will pay no road tax, while higher-polluting cars will pay more.

In other words, the cost of motoring looks likely to rise steeply for most of us... but not for a little while.

More ominously, the Chancellor announced that he has set aside funding for road pricing proposals, and 'invited tenders' to develop pay-per-mile charging.

If you didn't think before that road pricing was a future certainly, here's the proof. It's up to you lot to tell the hypnotically eyebrowed Chancellor what you think of it.

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  • Budget 2008
  • Budget 2008
  • Budget 2008

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