Yesterday’s Budget announcement, delivered by Chancellor of the Exchequer George Osborne, held good news for motorists.
Fuel duty frozen
The Chancellor announced that a planned fuel duty increase is set to be scrapped in an attempt to keep petrol prices down. An increase of 0.5p in fuel duty was planned for September, but the tax will now be frozen for the fifth year running and will remain at 57.95p per litre.
The Chancellor said: “I want to make sure that the falling oil prices are passed on at the pumps, so I am today cancelling the fuel duty increase scheduled for September — petrol frozen again, it’s the longest duty freeze in over 20 years.”
The Chancellor claimed that this freeze will save the average family around £10 every time they fill up their car.
It is estimated this initiative could save motorists £675 per year by 2015, and for lorries the price of filling up could drop by £21,000 per year.
The news comes as Brits are already benefiting from a drop in fuel costs. Prices at the pump have dropped by 19p per litre since March 2014, meaning the cost of a tank is approximately £11 cheaper than this time last year.
Drivers in rural areas will be even better off, with a 5p per litre drop in fuel prices expected to be introduced on 1st April.
Changing Britain’s roads
The Chancellor also pledged an additional £100m to the UK’s effort in producing driverless cars. However, public enthusiasm for the technology remains low – a recent uSwitch survey found that almost half of Brits would be unwilling to be a passenger in a driverless vehicle.
Those hoping for cuts to road tax will be disappointed with this year’s Budget — the tax will rise by 1% in line with inflation. However, the tax exemption for classic cars will now be extended to cars registered before 1 January 1976.
The Budget also outlined the government’s commitment to improving UK roads, with £2.3bn worth of schemes currently underway.
For more on how the budget will affect your household, see our round-up.