 Full details of the Budget announcements are available on the HM Treasury website released following the Chancellor's statement to Parliament. Budget Statement 2016 document from HM Treasury. More  Preview of the Budget 2016 See our preview. More Posted: 160316 @ 13.55 Updated: 160327 | Budget
Statement on Wednesday 16th March The Budget Statement 2016 made in the House of Commons by the Chancellor of the Exchequer, George Osborne, on Wednesday 16th March provided an update on the Government’s plans for the economy based on the latest forecasts from the Office for Budget Responsibility. These forecasts are published alongside the Budget Statement. Full details of the Budget 2016 announcements are available on the HM Treasury website following the Chancellor's statement to Parliament. As usual we have this prompt report on the few measures announced which will be of interest to the classic motoring enthusiast. It is released within an hour or so of the Chancellor sitting down in the House of Commons. Good news for the classic car enthusiast The fuel duty freeze was a welcome announcement as there were fears the Chancellor might have made an increase. The permanent measures for the VED classic vehicle exemption are reassuring. The insurance premium tax increase of 0.5% is less than might have been feared and its use for flood prevention is very welcome in areas which have suffered over recent months like Cumbria. See the HM Treasury Budget 2016 document for full details - extracts from that document are screengrabbed into our document. More & Document | Headlines
for classic car motoring Fuel Duty continues to be frozen for the 6th year saving a typical driver £75pa if the freeze had not been extended another year. A typical driver spends £450pa less on motor fuel than they would do had the freeze on the Labour Party's fuel duty escalator not been introduced by the Conservative/Liberal Coalition in 2010 and continued by the present Conservative government. The continued freeze was a very welcome announcement. More VED classic vehicle exemption - the Government will legislate to place the classic car vehicle VED exemption on a permanent basis from 1st April 2017 so that from 1st April each year vehicles constructed more than 40 years before the 1st January of that year will automatically be expempt from paying VED (Finance Bill 2016) Para 2.163 More Vehicle Excise Duty rates and bands - from 1st April 2016 VED rates for cars, vans and motorcycles will increase by RPI (Finanec Bill 2016) Para 2.164 More Insurance tax increased by 0.5% to 10% with the tax take used for UK flood defence spending. More Tolls on the Severn Crossing halved. Road infrastructure upgrades to the A66 and A69 and a four lane upgrade for the M62. More Alcohol duties frozen on beer, whisky and cider. More Higher rate personal tax threshold raised from £42,385 to £45,000 in 2017-18. More Clamping down on claims management companies. More National infrastructure commission proposals adopted. More | ||||
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did we see in the Autumn Statement 2015 for classic car motoring? Fuel Duty The government will cancel the RPI inflation Fuel Duty increase of 0.54 pence per litre scheduled for 1st September 2015. The effect is the fuel duty increase planned by the previous Labour government and due to apply from September 2015 has been cancelled. The aggregate saving for drivers is now around £10 per tank of fuel. Vehicle Excise Duty rates and bands From 1st April 2015 Vehicle Excise Duty (VED) rates for cars, vans, motorcycles and motorcycle trade licences will increase by RPI. (Finance Bill 2015) Vehicle Excise Duty classic vehicle exemption As announced at Budget 2014, from 1st April 2016 a vehicle manufactured before 1st January 1976 will be exempt from paying VED. (Finance Bill 2015) | Alcohol Duty rates From 23rd March 2015, the duty rates on general beer, spirits and lower strength cider will be reduced by 2%. The duty rate on low strength beer will be reduced by 6% and the total duty rate on high strength beer will be reduced by 0.75%. The duty rate on high strength still cider will be reduced by 1.3% and the duty rates on wine below 22% abv and high strength sparkling cider will be frozen. (Finance Bill 2015) (9,10) Over the last four years we have seen fuel duty frozen and VED exemption reintroduced for classic car owners, both measures that have been a real benefit for classic car enthusiasts. See our VED exemption guide and flowchart. More Will the VED roll on as promised? More | |||||
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our earlier reports and links to HM Treasury and HMRC webpages. More Why does the Chancellor hold the "Red Box" up for photos as he leaves for the House of Commons on Budget day? Seeing the red case on the news item reminds me of an article in a newspaper today which recounts how in 1868 George Ward Hunt, the chancellor in Disraeli's short lived government, went to the House of Commons but left his budget speech behind at home. Now chancellors lift the red box as they leave their "house" to show they haven't forgotten their speech. |
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