Alistair Darling today took from motorists with one hand while pretending to give with another during his first ever Budget speech.
After the Government had scared the life out of motorists and hauliers with talk of a 2p rise in fuel duty, Darling today revealed that this would in fact be delayed for six months.
Fuel duty rates will rise by 0.5 pence per litre above indexation on 1 April 2010.
Meanwhile, however, he announced that high-polluting cars will be hit with big increases in tax, while cars less than 130 grams per kilometre of carbon dioxide will pay no car tax at all in the first year.
In fact, from April 2009 Darling intends a major reform to Vehicle Excise Duty, apparently to encourage manufacturers to produce cleaner cars and by introducing new bands.
It was bad news too for those who oppose road pricing as Darling intends to set aside funds to develop the technology to make this possible.
- Funding is to be set aside for road-pricing plans.
- Rise of 2p on fuel duty to be postponed until October 2008. Fuel duty will rise by 0.5p per litre in real terms in 2010.
- Major reform of vehicle exise duty from 2009.For new cars from 2010, the lowest- polluting cars will pay no road tax in the first year, while higher-polluting cars will pay more.
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