Budget Report - March 2012

George Osborne, the Chancellor of the Exchequer for the Conservative-LibDem Coalition government, presented his Budget speech to the House of Commons today.
Report posted: 210312 @ 1450

Updated: 210312 @ 2115
Updated: 220312 @ 1130

Where can I get further information?

Budget 2012
- Chancellor's speech in full. More
HM Treasury website
. More
DirectGov website Budget summary
. More
Budget 2012 "red book"
. More
HMRC summary of changes
. More
HMRC - Overview of tax legislation
. More
HMRC - Annex B tax rates & allowances
. More

Daily Telegraph - Budget 2012 at a glance
. More

Our previous report on the Emergency Budget in June 2011
Budget report. More

How has classic motoring suffered in the Budget?
Sadly the Budget statement today had no reduction of the planned increase in fuel duty coming in this August 2012 but the good news was no increase in VED rates above inflation (RPI).

Chancellor's comments on Fuel Duty and VED
About two thirds of the way into his Budget statement (under "Duties"), the Chancellor noted "high oil prices have put real pressure on household budgets and on businesses.
That is why we took action in last year’s Budget to cut fuel duty so it is 6p lower than our predecessors planned. We have also scrapped the last Government’s fuel duty escalator of annual above inflation rises, regardless of the oil price – and are today confirming the fair fuel stabiliser. Above inflation rises will only return if the oil price falls below £45 on a sustained basis – currently equivalent to around US$75 dollars per barrel. These measures mean that this Government has eased the burden on motorists by £4.5 billion at a time when money is very short. I do not propose to make any further changes to the fuel duty plans already set out. I am increasing Vehicle Excise Duty (VED) by inflation only." Budget Statement

How does the Fair Fuel Stabiliser work?
See a useful article on the "This Money" website. More

Fuel duty - no change to the planned increase due in August 2012

The Government announced at Autumn Statement 2011 that the 3.02ppl fuel duty increase that was due to take effect on 1s January 2012 would be deferred to 1st August 2012 and the inflation increase that was planned for 1st August 2012 will be cancelled. This will ensure that there will only be one RPI increase this year. The Chancellor confirmed in his statement this fuel duty increase will go ahead.
The total fuel duty per litre on unleaded petrol following that 3.02p ppl increase in August 2012 will then be 60.97ppl. See page B21of the HMRC Annex B tax rates & allowances. More & More

VED rates increase by RPI
VED for 2012-13 will increase by inflation only (RPI). So for the pre-graduated vehicles over 1549cc the VED rate will rise by £5 from £215 (2011-12) to £220 from 1st April 2012. More

Changes to transport taxes in the Budget statement 2012
A couple of clauses in the Transport taxes section, on page 70 in the Budget "red book", are interesting. More

VAT - no change
Thankfully no increase.

Roads improvement scheme
Awaiting clarification. More

Insurance tax
The standard rate of 6% (Jan 2011 - April 2012) remains at 6% for 2012-13 - see page B18 of the HMRC document. Tax rates & allowances Annex B
V8 Register - MG Car Club - the leading group for MG V8 enthusiasts at www.v8register.net