Report on the Spring Statement 2023

Spring Statement on Wednesday 15th March 2023
The Spring Statement made in the House of Commons by the Chancellor of the Exchequer, Jeremy Hunt MP, alongside the next forecast for the economy and public finances he commissioned the Office for Budget Responsibility (OBR).

As usual we have a prompt report on the statement and the measures announced by the Chancellor which will be of interest to classic motoring enthusiasts. It is released within an hour of his sitting down in the House of Commons.

Fuel duty cut by 5p a litre and the fuel duty freeze both continue for a further 12 months
With motor fuel prices still at high levels following the recent fuel crisis in the UK, the Chancellor announced the temporary 5p fuel duty cut introduced in the Budget 2022 will continue for a further 12 months, a saving of around £75 for the average car driver in the UK. In addition the fuel duty freeze, seen for 12 years since March 2011, will continue at 57.95p per litre for petrol and diesel saving the average driver £200. VAT is levied on fuel duty (effectively a tax on tax) so compounds any rise in fuel duty. Also fuel duty is supposed to have risen with the retail price index measure for inflation, which was 13.4% in January 2023, meaning motorists would have faced a steep rise this year. Confining the fuel duty freeze and the 5p cut will both be welcomed by vehicle users (including key workers) and all businesses that rely on road transport. For an MGV8 driver covering say 4,000 miles a year that will be a saving of around £35.

Pot hole fund increased
The previous £500m pothole fund will be increased by £200m (+40%) to help local authorities cope with a serious problem for road users. All drivers are aware of how the problem with potholes has increased in recent years so this boost to the pothole fund will be very welcome and particularly by classic car drivers.

Road Tax changes
The Road Tax (VED) exemption for cars built over 40 years ago remains. The new road tax rates for 2023-2024 affect all cars and vans in the UK and come into effect on 1st April 2023. There was no announcement of any introduction of any road tax or road use charges for electric car drivers.

Vehicle Excise Duty bands and rates for cars and vans registered before 1st March 2001 that will apply from 1st April 2023 are:

So RV8 owners will see their annual VED rate rise to £325 (+10.1%) from 1st April 2023.

HMRC: Annex A: rates and allowances

Alcohol duty cut for draught been and cider
To help pubs at a time with rising costs, not least heating costs, the Chancellor announced a 11% cut in alcohol duty in draught beer sold in pubs compared with the beer sold in supermarkets. Draught beers typically have 3.5% alcohol so the reduced rate of duty probably would typically be about 2p less on a pint of draught beer in a pub. The reduced alcohol duty will apply from 1st August 2023.

Insurance Premium Tax (IPT)
Insurance premiums have the additional cost of IPT, currently 12% so for motorists the possibility of a rise in IPT rates was a concern. There was no announcement on this topic.

See a guide to Budget statement buzzwords. More

Spring Statement and related documents - see the HM Treasury webpages on the Chancellor's Statement & Related documents.

Policy paper
Spring Budget 2023

Published 15 March 2023

HMRC: Annex A: rates and allowances
HMRC: Annex A: rates and allowances

Office of B
udget Responsibility (OBR)
OBR economic and fiscal outlook – March 2023.

Unleaded & Super Unleaded petrol prices
V8 Webmaster's local prices today are:
Unleaded petrol: 144.9p per litre
Super unleaded: 151.9p per litre

What makes up the price of a litre of petrol
Source: RAC & Times
Posted: 230315 @ 14.15

Updated: 230315 @ 16.20
Updated: 230316 @ 13.00
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