Statement on Wednesday 25th November|
The Autumn Statement 2015
made in the House of Commons by the Chancellor of the Exchequer, George Osborne,
on Wednesday 25th November provided an
update on the Governments plans for the economy based on the latest forecasts
from the Office for Budget Responsibility. These forecasts are published alongside
the Budget Statement. Full details of those announcements are available on the
HM Treasury website
following the Chancellor's statement to Parliament but as usual we have a prompt
report on the few measures announced which will be of interest to the classic
usual we have a prompt report on the Budget Statement within an hour or so of
the Chancellor sitting down in the House of Commons.
See extracts from
the HM Treasury document. More
for for classic car motoring |
Duty - no changes from the Summer Budget 2015.
Excise Duty rates and bands - no change to the RPI increases announced in
the Budget earlier this year - see below.
Vehicle Excise Duty classic
vehicle exemption - no change to the rolling 40 year VED exemption announced
at Budget 2014 - see below.
Pothole fund - the Chancellor mentioned
in his statement that the fund was established so hopefully some the damaging
holes classic car enthusiasts encounter will be repaired. More
on whiplash insurance claims that push up insurance premiums. More
George Osborne delivered his last Budget statement of the current UK Parliament
in July 2015 and provided
an update on the economy, including tax announcements.|
details of the Budget announcements are available on the HM Treasury website
released following the Chancellor's statement to Parliament.
Statement 2015 document from HM Treasury. More
of the Autumn Statement 2015
See our preview. More
did we see in the Summer Budget 2015 for classic car motoring?|
The government will cancel the RPI inflation Fuel Duty increase of
0.54 pence per litre scheduled for 1st September 2015. The effect is the fuel
duty increase planned by the previous Labour government and due to apply from
September 2015 has been cancelled. The aggregate saving for drivers is now around
£10 per tank of fuel.
Vehicle Excise Duty rates and bands
1st April 2015 Vehicle Excise Duty (VED) rates for cars, vans, motorcycles and
motorcycle trade licences will increase by RPI. (Finance Bill 2015)
Excise Duty classic vehicle exemption
As announced at Budget 2014, from
1st April 2016 a vehicle manufactured before 1st January 1976 will be exempt from
paying VED. (Finance Bill 2015)
From 23rd March 2015, the duty rates on general beer, spirits
and lower strength cider will be reduced by 2%. The duty rate on low strength
beer will be reduced by 6% and the total duty rate on high strength beer will
be reduced by 0.75%. The duty rate on high strength still cider will be reduced
by 1.3% and the duty rates on wine below 22% abv and
high strength sparkling
cider will be frozen. (Finance Bill 2015) (9,10)
the last four years we have seen fuel duty frozen and VED exemption
reintroduced for classic car owners, both measures that have been a real benefit
for classic car enthusiasts.
See our VED exemption guide and flowchart.
Will the VED
roll on as promised? More
151125 @ 1425||What
did we see in previous Budgets and Autumn Statements?|
our report on the Summer Budget 2015. More|
our report on the Budget 2015 in March 2015. More
our earlier reports and links to HM Treasury and HMRC webpages. More
does the Chancellor hold the "Red Box" up for photos as he leaves for
the House of Commons on Budget day?
Seeing the red case on the news item
reminds me of an article in a newspaper today which recounts how in 1868 George
Ward Hunt, the chancellor in Disraeli's short lived government, went to the House
of Commons but left his budget speech behind at home. Now chancellors lift the
red box as they leave their "house" to show they haven't forgotten their
headlines for classic car enthusiasts in the Autumn Statement or "Mini Budget"
on Wednesday 3rd December 2014 were:
> Motor fuel duty frozen
in 2015 - George Osborne said "despite falling fuel prices let me make
this clear: we've cut fuel duty and we will keep it frozen."
Road building to deal
with a number of bottlenecks
on the A1 in the north and the A303 - the Government has committed £15 billion
to improve the national road network. Green campaigners have railed against Chancellor
George Osborne's Autumn Statement, slamming its "1980's-style road building
programme and tax breaks for fossil fuel giants". Are there tax breaks for
> Motorway fuel price comparison signs
the government will install electronic signs showing fuel price comparisons
on the M5 between Bristol and Exeter during 2015. (Para 2.240, p 90 HM Treasury
- no change
No increase in the VAT rate was announced but equally no reduction
from the current 20% either.
No change which
could have had an impact on classic car motor policies. The standard rate of 6%
(Jan 2011 - April 2012) remained at 6% for 2012-13 and continues for 2014-15.
See page B18 of the HMRC document.
rates & allowances Annex B
from earlier Budget Statements
Excise Duty (VED)
In the Budgets 2013 and 2014 classic
car enthusiasts saw very welcome news with VED exemption concessions, so now the
concern for enthusiasts with cars built after 1974, which do not yet benefit from
the exemption, is the VED rates and bands that apply to their classic car
and daily cars.
rates and bands
The Budget Statement in March 2013 announced that from
1st April 2013 VED rates would increase in line with RPI, apart from VED rates
for heavy goods vehicles (HGVs) which will be frozen in 2013-14. The Statement
added the Government has no plans to make significant reforms to the structure
of VED for cars and vans in this Parliament. So from 1st April 2014, VED rates
are likely to continue to increase in line with the Retail Prices Index (RPI).
According the previous announcements, the Government has shelved its plans to
reform to the structure of VED bands for cars and vans in this Parliament. So
the bands will remain. (Para: 2.146, page 83).
exemption now a rolling concession
In the Budget 2014 in March, tucked away on page 76 of the support document released
by HM Treasury shortly after the Chancellor sat down, was the welcome brief announcement
"the Government will introduce a rolling 40 year VED exemption for classic
vehicles from 1st April 2014". (Para
2.153, page 76). That
rolling VED exemption followed the earlier announcement in the support document
issued by HM Treasury shortly after the Budget Statement made in March 2013
that the Government would extend the cut off date from which classic vehicles
are exempt from VED by one year. So making it a rolling feature was very good
news. See our additional information on VED exemption.
exemption guide & flowchart
the paper tax disc and payment of road tax by Direct Debit|
were confirmed as part of a simplification of VED administration and were introduced
by DVLA in October 2014. See our NEWS reports. More
In March 2014 the Chancellor confirmed the 2p fuel duty increase
due in September 2014 would be frozen. This followed the announcement in the Autumn
Statement 2013 that as well as scrapping that increase, George Osborne confirmed
that no further rise would take place until at least May 2015 to ease the cost
of motoring for the general public and UK business. To date, fuel duty has now
been frozen for over four years, the longest duty freeze for over 20 years. Since
their election in 2011, the Coalition has cancelled or delayed all the fuel duty
rises that had been announced by the previous Labour administration.
by scrapping all intended rises in duty over the last four years, the Treasury
has sacrificed £22 billion of potential tax revenue; a loss which will have
to be balanced by cuts elsewhere in the economy.
With falling motor
fuel prices at filling stations, the tax take as a percentage of the price per
litre has risen. There is pressure to reduce that percentage with a consequent
reduction in the combined taxes and duty. With lower pump prices pleasing the
motorist the likelihood of a reduction in either tax or duty on motor fuel seems
Falling fuel prices
With the fall in crude oil prices
motor fuel prices have been falling driven in many cases by supermarket filling
stations - supermarkets are experiencing the most intense market battle for many
years and attracting customers has become an essential need. Using low motor fuel
prices is a tactic they use which is a benefit to the motorist as it puts pressure
on leading petrol retailers to consider their fuel prices too and often reduce
Classic car enthusiasts have reported some heavy suspension
crashes with the ever increasing pothole problem, so they welcomed the good news
in the last Budget Statement that a £200m pothole repair fund was being
established. This will mean councils will be able to bid for money to repair roads
ravaged by the winter floods. The current estimate for repairs mentioned in the
Budget 2014 was£400 million, on top of the £10.5 billion repair backlog
that already exists. (Para
2.28, page 63)
Register - MG Car Club - the
leading group for MG V8 enthusiasts at www.v8register.net|