A number of announcements impacting on the motor industry were contained in today’s (Wednesday March 8, 2017) Budget Statement of Chancellor of the Exchequer Philip Hammond.
The Budget came just four months after the Autumn Statement and has been viewed as a “transitional Budget” with no dramatic or radical announcements. That’s because the government is to reschedule the Budget announcement with it moving to the Autumn from later this year.
Indeed many tax measures, including those relating to company car benefit-in-kind tax to the end of 2020/21, Vehicle Excise Duty for cars first registered from April 1, 2017, capital allowances, car fuel benefit charge, van benefit charge, van fuel benefit charge and Insurance Premium Tax had been previously announced.
However, below are measures that were announced.
Fuel duty – frozen again in 2017. It is the seventh consecutive year that there has been no increase.
Vehicle Excise Duty (VED) – from April 1, 2017, VED rates for cars and vans registered before April 2017 increase by RPI.
Corporation Tax – the main rate will reduce to 19% from 20% in April 2017 before being cut again to 17% in 2020/21.
Air quality – the government is committed to improving air quality, and will consult on a detailed draft plan shortly which will set out how the UK’s air quality goals will be achieved. Alongside that, the government will continue to explore the appropriate tax treatment for diesel vehicles, and will engage with stakeholders ahead of making any tax changes at Autumn Budget 2017.
Driverless car technology – an investment of £270 million to keep the UK at the forefront of so called “disruptive technologies” which includes driverless vehicles as well as biotech and robotic systems.
Investment to ease traffic congestion – £90 million for the North and £23 million for the Midlands from a £220 million fund that addresses pinch-points on the national road network.
The launch of a £690 million competition for local authorities across England to tackle urban congestion and get local transport networks moving again. The Transport Secretary will announce details shorty.