 HM Treasury website See a guide to Budget statement buzzwords. More... Posted: 231122 |
Autumn
Statement 2023: what did Jeremy Hunt unveil? Chancellor of the Exchequer Jeremy Hunt delivered his Autumn Statement on Wednesday 22nd November to the House of Commons and updated MPs on the country's finances and the Government's plans for tax and public spending, based on the latest forecasts from the Office for Budget Responsibility (OBR). The Chancellor's statement provided information on the UK Government's anticipated revenue generation and announcements on plans for taxation and public spending. The Chancellor has often ruled out the possibility of tax cuts in the near future, saying it will be 'virtually impossible' to do that until the UK Government's high debt levels are brought down and the economy is under control. But recently it seems the Chancellor may consider tax cuts after all, so long as it meets the target of halving inflation by the end of this year. The Autumn Statement started at12.30pm after Prime Minister's Questions and ran for an hour. As usual we have a prompt report on the statement and the measures announced by the Chancellor of interest to classic motoring enthusiasts which will posted here within an hour or so of his sitting down in the House of Commons. What did we see of interest to classic car enthusiasts? The freeze on fuel duty will continue and also that there will be no further increases in Insurance Premium Tax (IPT). The the rolling 40 year road tax exemption for cars with "Historic VED "status will continue. State pension payments to increase by 8.5% from April, in line with average earnings. |
| Report
of the Autumn Statement As usual we have a prompt report on what the Chancellor has had to say shortly after her finished his statement to MPs which highlights the key points of interest to V8 Register members.. See our earlier report on fuel duty |
No
fuel duty changes announced Press reports had suggested the Chancellor has been under pressure to raise fuel duty but no announcement on fuel duty rates was made by the Chancellor. Fuel duty is a tax included in the price you pay for petrol and diesel at filling station pumps and also on oil used for heating. It was cut by 5p in March 2022 by the then Chancellor Rishi Sunak, but Treasury officials have reportedly told Hunt he needs to hike the rate by at least 2p to try and recover around £5bn of tax revenue lost each year since the duty was reduced. That could see fuel duty rising to 55p a litre for petrol and diesel and with VAT also levied on fuel duty, there is a compounding effect on any fuel duty rise. Fuel duty was last raised in 2011 and Hunt has previously said that any continuation of the current freeze would be depend on the state of public finances. VED rates increase in line with RPI from 1st April 2024 The Chancellor announced an increase in VED rates which will apply to classic cars built before 1985 so RV8 owners in the UK will have that cost. The announcement in the Autumn Statement document was: 5.80 Vehicle Excise Duty (VED) uprating for cars, vans & motorcycles The Government will uprate VED rates for cars, vans and motorcycles in line with RPI from 1st April 2024 in the Autumn Finance Bill 2023. Heavy Goods Vehicles (HGV) will see an HGV levy freeze to support the haulage sector. VED rates for HGVs and the HGV levy will both remain at 2023-24 rates for 2024-25. State pension payments to increase by 8.5% from April 2024, in line with average earnings There have been rumours the Treasury was considering plans to "adjust" the 'triple lock' a protection that dates back to 2010 and guarantees pensions will be boosted by either September’s inflation, earnings growth (from the period between May to July) or 2.5% - whichever is highest. Based on current wage growth figures, it meant a serious rise of 8.5% from April 2024 would be needed. The Conservatives pledged in their last election manifesto not to tamper with the triple lock formula. Other topics VED on Electric Vehicles from April 2025 With the Government's ban on the sale of new petrol and diesel vehicles from 2030 the reform of motor taxes had become an urgent question for the Treasury because the switch to electric cars means almost £30bn in fuel duty raised annually for the Treasury will need to be replaced. The announcement in the Autumn Statement document was: 5.34 VED on Electric Vehicles (VED) From April 2025, electric cars, vans and motorcycles will begin to pay VED in the same way as petrol and diesel vehicles. This will ensure that all road users begin to pay a fair tax contribution as the take up of electric vehicles continues to accelerate. The government will legislate for this measure in Autumn Finance Bill 2022. This means: o new zero emission cars registered on or after 1st April 2025 will be liable to pay the lowest first year rate of VED (which applies to vehicles with CO2 emissions 1 to 50g/km) currently £10 a year. From the second year of registration onwards, they will move to the standard rate, currently £165 a year. o zero emission cars first registered between 1st April 2017 and 31st March 2025 will also pay the standard rate. o the Expensive Car Supplement exemption for electric vehicles is due to end in 2025. New zero emission cars registered on or after 1st April 2025 will therefore be liable for the expensive car supplement. The Expensive Car Supplement currently applies to cars with a list price exceeding £40,000 for 5 years. o zero and low emission cars first registered between 1st March 2001 and 30th March 2017 currently in Band A will move to the Band B rate, currently £20 a year. o zero emission vans will move to the rate for petrol and diesel light goods vehicles, currently £290 a year for most vans o zero emission motorcycles and tricycles will move to the rate for the smallest engine size, currently £22 a year. o rates
for Alternative Fuel Vehicles and hybrids will also be equalised. |
|
|||
