Budget Report - March 2011

George Osborne, the Chancellor of the Exchequer for the Conservative-LibDem Coalition government, presented his Budget speech to the House of Commons today. In an email sent out later in the day he said "I know times aren't easy for families at the moment, so this Budget announced help, including an immediate cut in fuel duty by 1 pence per litre and a delay of April's inflation rise in duty to next January. This means fuel duty is 6 pence lower than it would be under Labour. We are paying for this by putting up taxes on the oil companies while the oil price is high to create a Fair Fuel Stabiliser."
Report posted: 23.3.11 @ 1425

Update posted: 23.03.11 @ 1442

Further update: 23.03.11 @ 2230


Where can I get further information?

Budget 2011
- Chancellor's speech in full. More
HM Treasury website
. More
Budget 2011 "red book"
. More
HMRC summary of changes
. More & More

Daily Telegraph - Budget 2011 at a glance
. More

Our previous report on the Emergency Budget in June 2010
Emergency Budget report - June 2010. More

How has classic motoring suffered in the Budget?
The good news today was a useful reduction in fuel duty!

Fuel duty - Fair Fuel Stabiliser

The Chancellor announced the abolition of the Fuel Duty Escalator and the introduction of the Fair Fuel Stabiliser so when oil prices are high, as now, fuel duty will increase by inflation only. More

Fuel duty - reductions

The Chancellor announced fuel duty will be cut by 1 penny per litre from 6pm today. In addition, to ease the burden on motorists, the 2011-12 inflation-only increase in fuel duty, which was due to come in on 1st April 2011, will be deferred to 1 January 2012 when the main fuel duty rate will increase by 3.02 pence per litre. That should avoid a 4p a litre increase. The 2012-13 increase in fuel duty will be implemented on 1 August 2012. More

VED rates increase by RPI
VED for 2011-12 will increase by RPI. So for the pre-graduated vehicles over 1549cc the VED rate will rise by £10 from £205 (2010-11) to £215 (2011-12). See p232 of the HMRC document. More

VAT - no change
Thankfully no increase.

Pothole funding towards repairing the roads
Chancellor announced £100m to help local councils repair winter potholes in our roads.

Insurance tax
The standard rate of 6% (Jan 2011 - April 2011) remains at 6% (April 2011 to April 2012). More
V8 Register - MG Car Club - the leading group for MG V8 enthusiasts at www.v8register.net