Budget 2017: what motorists need to know

Chancellor of the Exchequer Philip Hammond announced his first ever Budget this week and there were some significant points UK motorists should be aware of. Fuel duty frozen There was good news in that fuel duty wouldn’t rise in 2017. This represents the eighth consecutive time that the government resisted adding any further taxation on the price of a litre of petrol or diesel. However, this doesn’t change the fact that UK fuel duty remains the highest in the world. New road tax system coming April It appears April’s road tax overhaul will go ahead as planned. The new system will see drivers of petrol and diesel cars – registered from April 1, 2017 – pay more in road tax. In the 12 months after a new car is registered, drivers will be taxed according to their vehicle’s CO2 emissions levels. However, from year two, any petrol or diesel vehicle that emits more than 1g of CO2 will be liable for a standard rate of £140. Meanwhile, hybrids and other alternatively fuelled vehicles will be taxed £130. The new system wasn’t mentioned during Mr Hammond’s speech in the Commons, which may explain why a survey conducted by the AA earlier this year found that 51 per cent of drivers knew nothing about the planned changes. Better roads While the cost of driving may be rising, the actual roads themselves should see an improvement in coming months. This is because Mr Hammond announced that £90 million will be spent on alleviating congestion in the north of England. A further £23 million will go towards tackling pinch points in the Midlands, while local authorities across England will be able to apply for a share of the £690 million made available to quash congestion and improve local transport. Self-driving cars The chances of your car driving itself took a step closer after the Chancellor revealed that around £270 million will go on developing autonomous vehicle technology. No diesel car scrappage scheme Following VW’s much-publicised ‘Dieselgate’ emissions scandal and concerns about inner-city air quality, there had been talk of an incentive to squeeze diesel cars from UK roads. If there are any such plans, then they weren’t revealed this time. Reacting to 2017’s Budget, Ben Robb, brand manager at The Fuelcard People, said: “Freezing fuel duty for another 12 months is definitely a welcome decision. Any money that can be pumped into improving the state of Britain’s road has to be a positive thing too.”