A number of announcements impacting on the motor industry were contained in today’s (Wednesday November 22, 2017) Budget Statement of Chancellor of the Exchequer Philip Hammond.
Below are measures that were announced.
In support of the National Air Quality Plan published in July, the government will provide £220 million for a new Clean Air Fund. It will allow local authorities in England with the most challenging pollution problems to help individuals and businesses adapt as measures to improve air quality are implemented. The Fund will be paid for by:
Company car tax and Vehicle Excise Duty (VED)
The government will legislate in Finance Bill 2017/18 to confirm that carbon dioxide figures compatible with the current New European Driving Cycle test procedure will be used by HM Revenue and Customs for the purposes of collecting company car tax until April 2020. The government will however also take forward legislation in a future Finance Bill that will change the system for measuring carbon dioxide emissions to the Worldwide Harmonised Light Vehicle Test Procedure from April 2020. Similar legislation will be introduced in respect of VED.
The scheduled rise in fuel duty from April 2018 has been cancelled. It is the eighth consecutive year that there has been no increase.
Vehicle Excise Duty (VED)
From April 1, 2018, VED rates for cars, vans and motorcycles registered before April 2017 and the First-Year Rates for cars registered after April 2017 will increase in line with RPI.
Benefits in kind: electric vehicles
From April 2018, there will be no benefit-in-kind charge on electricity that employers provide to charge employees’ electric vehicles.
Ultra-low emission vehicles
To support the transition to zero emission vehicles, the government will:
Connected and Autonomous Vehicles (CAVs)
The government wants to see fully self-driving cars, without a human operator, on UK roads by 2021. The government will therefore make world-leading changes to the regulatory framework, such as setting out how driverless cars can be tested without a human safety operator. The National Infrastructure Commission (NIC) will also launch a new innovation prize to determine how future roadbuilding should adapt to support self-driving cars.
Transforming Cities Fund
A £1.7 billion fund from the Northern Powerhouse Investment Fund will support intra-city transport. It will target projects which drive productivity by improving connectivity, reducing congestion and utilising new mobility services and technology.
The government is investing an additional £45 million in 2017/18 to tackle around 900,000 potholes across England.
Tolls on Severn bridges
As previously announced, the government will abolish tolls on the Severn bridges at the end of 2018, and cut the tolls in January 2018 as the bridges come back into public ownership.
For a more in depth look at the motoring budget head over to here
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