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 |