200311 @ 1330
Updated: 200311 @ 1432
HM Treasury website
Briefings and news. More
Budget 2020 document
of the Budget statement
Extracts from the Budget statement 2020 PDF document. More
The outlook for the Spring Budget 2020 from the Institute of Fiscal
How should fiscal policy respond to Covid-19?
looks likely that responding to the coronavirus outbreak (covid-19)
will be at the centre of Wednesdays Budget. The IFS look at
some of the options the Chancellor has. More
See a guide to Budget statement buzzwords. More...
See report on the Budget
in November 2019. More
Statement on Wednesday 11th March 2020
The Spring Statement
made in the House of Commons by the Chancellor of the Exchequer, Rishi
Sunak MP, on Wednesday 11th March 2020 provided an update on the Government's
plans for the economy based on the latest forecasts from the independent
Office for Budget Responsibility. These forecasts are published alongside
the Spring Statement. Budget
Budget was an unusual one with so much going on - the Coronavirus
problem developing rapidly in the UK, the UK/EU negotiations in progress,
falling crude oil prices and falling stockmarkets too. But as usual
we have a prompt report on the statement made by the Chancellor
with points of interest to classic motoring enthusiasts. It is released
within a few minutes of his ending his statement in the House of Commons
and updated later when the supporting documents were released on the
GOV.UK website and could be reviewed.
What did we see of interest to classic car enthusiasts?
the pressing issues with the Brexit process and the uncertainties
and concerns over the Covid-19 virus epidemic and consequences for
the UK economy, the Chancellor's Spring Statement was focused on the
performance and prospects for the UK economy and resilience depending
on several outcomes for the Brexit negotiations and the Covid-19 situation
currently in progress in the UK.
After a freeze for a decade an increase in fuel duty was widely predicted.
The Times said today "an increase in fuel duty is on the cards
as part of the climate change agenda. The
fuel duty freeze has cost £9bn a year according to the Institute
for Fiscal Studies". The Chancellor's statement included the
good news - a continuation of the fuel duty freeze for another
year saving a typical driver £1,200pa. HM
Treasury's supporting document says "the Government will freeze
fuel duty for a tenth year in a row, cumulatively saving the average
car driver £1,200 compared to the pre-2010 escalator. Future
fuel duty rates will be considered alongside measures that are needed
to help meet the UKs net zero commitment.".
The Chancellor was expected to scrap the £2.4bn red diesel subsidy
for users of farming and construction vehicles, but it was thought
he might go further. He announced "the Government will also remove
the entitlement to use red diesel from April 2022, except in agriculture,
fish farming, rail and for non-commercial heating (including domestic
heating). By removing this tax relief on pollution, the Government
will encourage businesses and industry to improve the energy efficiency
of their vehicles and machinery or look for greener alternatives.
The development of these alternatives will be supported by the Government
more than doubling its investment in the Energy Innovation Programme.
(39)". So whilst he is abolishing the 11p/litre duty for for
most sectors using red diesel there will be a delay of 2 years but
agriculture will retain the relief paying duty of only 11p/litre.
Vehicle Excise Duty
The supporting document released by HM Treasury says "Vehicle
Excise Duty (VED): Rates The Government will increase VED
rates for cars, vans and motorcycles in line with RPI from 1 April
2020. To support the haulage sector, the Government will freeze
HGV VED and the HGV Road User Levy for 2020-21".
VED: Zero emission vehicles (ZEVs) from 1 April 2020, the Government
will exempt all ZEVs registered until 31st March 2025 from the VED
expensive car supplement. The measure will incentivise
the uptake of ZEVs to support the phasing out of petrol and diesel
This is a topic that has been seen in many recent Budget statements
but the Chancellor announced a £2.5bn five year fund for
pothole repairs for UK roads. This is welcome annousincement for
classic car enthusiasts as riding over, or into, a pothole can cause
damage to the suspension components.
The Chancellor announced £27bn investment in road projects with
4,000 miles of roads. He also announced that the funding will include
improvements to the A303.
Insurance Premium Tax
Fortunately the Chancellor's statement did not include any
further increases in Insurance Premium Tax (IPT).
Alcohol duty rates Duty rates on beer, spirits, wine
and cider will be frozen.