Report on the Autumn Statement 2013

Mini-Budget news for classic car enthusiasts
This year the Chancellor's Autumn Statement had good news - the the fuel duty increase planned for September 2014, expected to be worth 1.61p a litre, will be frozen. Taken with the associated VAT that's a saving of 2p a litre. Together with the earlier removal of the fuel duty escalator and freezing earlier planned fuel duty increases that amounts to around 20p a litre - a saving of over £11 a full tank. As expected the paper tax disc will be abolished, removing an administrative cost and inconvenience for millions of motorists. No new VED, VAT rate or insurance tax changes were announced.

George Osborne
, the Chancellor of the Exchequer for the Conservative-LibDem Coalition government, presented his annual Autumn Statement or Mini-Budget to the House of Commons on Thursday 5th December 2013. As usual we have a prompt report on the measures announced which will be of interest to the classic motoring enthusiast, posted within 30 minutes of the Chancellor sitting down.

Autumn Statement or Mini-Budget
The Budget provided an update on the Government’s plans for the economy based on the latest forecasts published alongside the Statement by the Office for Budget Responsibility. Full details of the announcements are available on the HM Treasury website following the Chancellor's statement to Parliament but as usual we have a prompt report on the measures announced which will be of interest for the classic motoring enthusiast.

Autumn Statement 2013 from the Chancellor of the Exchequer. More

HM Treasury support document.
Support document for the Autumn Statement 2013 released by HM Treasury. More

Budget Statement in March 2013
See our report. More

Updated: 131205 @ 1630
Posted: 131205 @ 1210


Draft Finance Bill 2014 will be published next week for consultation
The Treasury will publish the draft Finance Bill 2014 on Tuesday 10th December 2013 with the aim of consulting with the public and representative bodies (like the FBHVC) to ensure the legislation will work as intended. That draft Finance Bill 2014 will include draft clauses on the end of paper road tax discs and the online VED payment measures announced in the Autumn Statement 2013 together with the VED exemption extension change announced in the Budget 2013 in March (see below) when it is published on Tuesday. That will also include the Explanatory Notes (EN) and Tax Information and Impact Notes (TIIN). The consultation on the draft legislation will be open until 4th February 2014. More

See draft Finance Bill 2014 released on 10th December 2013. More

Fuel duty increase frozen
the fuel duty increase planned for September 2014, expected to be worth 1.61p a litre, will be frozen. Taken with the associated VAT that's a saving of 2p a litre. Together with the earlier removal of the fuel duty escalator and freezing earlier planned fuel duty increases that likely to amount to around 20p a litre by 2015 - a saving of over £11 for a full tank. More

Vehicle road tax discs to be scrapped
As expected the Chancellor announced in his Autumn Statement that paper tax discs are to disappear and instead of displaying a disc to prove that a car is fully taxed, motorists will instead register their car online. Checks will then be made by traffic cameras which will then automatically track vehicles on the road and identify those that are not registered as having paid vehicle excise duty or road tax. The change is part of the trend to provide paperless services online.

A BBC report noted tax discs were introduced in 1921 and it remains a legal obligation for vehicles on the public highway to display a valid disc. The change will allow people to pay the annual charge via a monthly direct debit. The Treasury said it showed the Government was moving "into the modern age". More

MOT price frozen until 2015
Another announcement in the support document is the statutory maximum price of the MOT test for a car will be frozen at £54.85 until 2015, a total saving of £50m for motorists. More

High cost of motor fuel on motorways
The support document says "the Government is taking further action to bring down the high costs of fuel on motorways. New price comparison road signs will be trialled which will show prices at different service stations along the route, making it easier for drivers to find the cheapest deal and encouraging competition on prices". More

VED: Classic Vehicle Exemption Extension
The HM Treasury support document for the Budget in March 2013 included a paragraph announcing the Government will extend the cut off date from which classic vehicles are exempt from VED by one year. From 1st April 2014 a vehicle manufactured before 1st January 1974 will be exempt from paying VED. (Para 2.148, page 84) HM Treasury & VED exemption

Updated 131210 & Posted: 131206
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