Emergency Budget Report - June 2010

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.
Where can I get further information?
HM Treasury Budget June 2010 webpage. More
Extracts from HM Treasury documents. More
Budget June 2010 documents. More

Our previous report on the Budget March 2010 with details of the planned VED rises
Budget Report - March 2010. More
V8 Register - MG Car Club - the leading group for MG V8 enthusiasts at www.v8register.net