George Osborne,
the Chancellor of the Exchequer for the Conservative-LibDem
Coalition government, presented his Emergency Budget speech
to the House of Commons today.
Report posted: 22.6.10 @ 1425 |
How
has classic motoring suffered in the Budget?
VED - no new changes
The Budget June 2010 announced no new changes. VED
rates
Fuel duty - no new increases
No new increases, but the previous Government's measures
mean fuel duty is already scheduled to rise by 1p on 1st October
2010 and by 0.76p on 1st January 2011. The Treasury documentation
mentions two measures - a possible Fair Fuel Stabiliser"
and a "fuel discount in remote rural areas", suggesting
that a pilot scheme is possible in Scotland.
VAT increases from 17.5% to 20.0%
The increase is deferred as it will take effect from 4th January
2011. The VAT increase will have a significant impact pushing
fuel prices up to an average of just over 120p a litre if the
increase had been announced with effect from today. That would
add about £10 to a typical classic car enthusiast's annual
motoring costs, more of course on your daily motoring costs.
The increase for work on your MG at a garage costing say £250
would be £6.25.
Insurance Premium Tax
The rate of IPT which is payable on a motor insurance premium
has been increased from 5% to 6% so the impact on say an annual
classic car premium of £116.00 would see IPT increase
from £5.80 to £6.96, a modest increase of £1.16
on annual motoring costs. |