 | Summer
Budget statement on Wednesday 8th July 2015 Chancellor George Osborne announced in June that there will be a Summer Budget on Wednesday 8th July 2015. It is being held because the policies in the last Budget in March earlier this year were produced by the coalition Goverment made up of Conservatives and the Liberal Democrats. Following the majority achieved by the Conservatives in the general election held on 7th May 2015, the governing party wants to set out its own policies based on its electoral mandate. In his statement to the House of Commons on Wednesday George Osborne will also want to be able to point to the latest growth forecasts from the Office of Budget Responsibility (OBR) which will be updated especially for this Summer Budget. See a guide to Budget statement buzzwords. More What will see of interest to classic car enthusiasts? Well over the last four years we have seen fuel duty frozen and VED exemption reintroduced for classic car owners on a rolling 40 year basis, both measures that have been a real benefit for classic car enthusiasts. See our report on the Budget in March 2015. More As usual we will have a prompt report tomorrow on the measures announced which will be of interest for the classic motoring enthusiast. within an hour or so of the Chancellor sitting down in the House of Commons. Full details of those announcements will be available on the GOV.UK website following the Chancellor's statement to Parliament. See press views on the forthcoming Summer Budget. More & BBC Progress reports In his Summer Budget 2015 statement being made to the House of Commons by the Chancellor of the Exchequer at present he has announced the good news that there will be "no fuel duty changes this year - fuel duty is frozen". He also mentioned an increase in insurance premium tax to 9.5% from November 2015 but we shall need to see the HM Treasury support document for clarification as to whether that will apply to motor insurance premiums. That document is not released until the Chancellor ends his statement. As usual we will have a report on the Budget statement of the measures of interest to classic car enthusiasts within an hour of the Chancellor sitting down. 150708 @ 1317 There will be a major reform to vehicle excise duties to pay for a new road-building and maintenance fund in England. How this will be structured and when it will be introduced will hopefully be clarified in the HM Treasury support document. 150708 @ 1323 Reform the regulation of the claims management sector Insurance Para: 1.207 The government remains committed to ensuring customers can purchase insurance at a fair price. The cost of home contents insurance has fallen by 8% since last year, and the cost of comprehensive private motor insurance has fallen by 10% in the last 3 years. The government will reform the regulation of the claims management sector to help to drive out further unnecessary costs from insurance premiums. This Budget announces a fundamental review of the regulation of claims management companies (CMCs), led by the Chairman of the Chartered Trading Standard Institute Board Carol Brady, which will report to HM Treasury and the Ministry of Justice in early 2016. In addition, there is also a case for reform of the fees that CMCs charge consumers, particularly in those instances where consumer complaints fall within the remit of the Financial Ombudsman Service. Therefore, the government will bring forward proposals for the introduction of a cap on the charges that CMCs can apply to their customers, and will consult on how this will work in practice. Summer Budget 2015 document, Page 47 MOT changes Para: 1.208 To further assist car owners, the government will extend the deadline for new cars and motorcycles to have a first MOT test from 3 years to 4, saving motorists more than £100 million per year, subject to public consultation and cost-benefit evaluation. Summer Budget 2015 document, Page 47 Insurance premium tax rise Para: 1.209 From 1 November, the standard rate of Insurance Premium Tax will be increased from 6% to 9.5%. The Insurance Premium Tax standard rate will remain lower than that of many other EU Member States. It will, for example, continue to be much lower than the 19% tax rate that applies in Germany. Seperately, the government will also introduce VAT provisions to level the playing field for insurers. This will deter insurers from routing costs via offshore associates and ensure UK VAT is accounted for an all repair services on UK insurance contracts. Summer Budget 2015 document, Page 47 See also para 2.133 on page 90 Modern transport infrastructure Para: 1.250 The government believes that a modern infrastructure network is vital. By 2020-21, this government will have trebled investment in improvements to the national road networks compared to 2012-13 levels, investing over £28 billion in enhancements and maintenance of national and local roads. To ensure that future roads investment is sustainable, this Budget announces a reform to vehicle excise duty (VED) to create a new Roads Fund. VED will be reformed for cars registered from April 2017 to make it fairer for motorists and reflect improvements in new car CO2 emissions. The new VED system will be reviewed as necessary to ensure that it continues to incentivise the cleanest cars. Summer Budget 2015 document, Page 56 Para: 1.251 From 2020-21 the government guarantees that all revenue raised from VED in England will be allocated to a new Roads Fund and invested directly back into the strategic road network. Further details of the VED reform are set out in paragraph 2.145. Summer Budget 2015 document, Page 56 |
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