Budget 2013: A PHer's Guide


In among the reams of information announced in the chancellor’s budget today, there were a few tidbits of good news for the money-conscious PHer.

Fuel duty frozen; VED on 1973 cars scrapped
Fuel duty frozen; VED on 1973 cars scrapped
The biggest news of all was that the 3p per litre fuel duty rise, which has been postponed for several years and was due to kick in this autumn, will now be cancelled altogether. To put that into context, 10,000 miles of average fuel consumption in a manual Porsche 911 Carrera S will cost £46 less than it would have done, assuming today’s average fuel prices. The Treasury also adds that prices today are 13p per litre cheaper than they would have been under previously-announced plans.

There was more good news for enthusiast motorists, too, with the announcement that the Government’s cut-off date for classic cars’ VED exemption will now be extended by one year, meaning cars produced in 1973, like the gorgeous Ferrari 365 GTB above, will now be tax exempt. There’s no word yet on whether this extension will continue to roll forward in future years, though.

One other significant change for motorists is that SORN declarations will no longer have to be renewed each year. From now on, all SORN applications will be open-ended, and as such will apply until the car’s tax is renewed. What’s more the grace period for failing to display a tax disc once purchased has been extended to 14 days.

Comments (99) Join the discussion on the forum

  • MX7 28 Mar 2013

    tworyeay said:
    Free road tax was originally a rolling 25 years until 1997 ( hence 1972, thanks Mr Brown ). I think in order to get votes this mob said they would resurect the 25 year rule, but yet another pledge forgotton about once they arrived in Downing Street, so an extra year is pathetic.Sign the petition on the to bring back the origianal ruling. http://epetitions.direct.gov.uk/petitions/37880
    No they didn't. They said that they would like to, but would have to see how things went.


    " Unfortunately Labour's debt crisis means we are not in a position to make any promises regarding restoring the rolling VED date. However I will ask my team to look at this problem and see what affordable and practical measures could help."

    It was never a pledge.

  • tworyeay 28 Mar 2013

    Free road tax was originally a rolling 25 years until 1997 ( hence 1972, thanks Mr Brown ). I think in order to get votes this mob said they would resurect the 25 year rule, but yet another pledge forgotton about once they arrived in Downing Street, so an extra year is pathetic.Sign the petition on the to bring back the origianal ruling. http://epetitions.direct.gov.uk/petitions/37880

  • RemarkLima 25 Mar 2013

    Alex106 said:
    tommyjj said:
    Randomly (or not hmmm) I received a letter from some debt collection agency affiliated with the DVLA this morning saying I'd not renewed the SORN on a motorbike I had a few years back. They are after £80.

    I wonder where that fine stands now given that it's for an offense that now doesn't exist.
    Probably still want you to pay it. I had one in December. I protested on the phone, but I got the impression the chap had heard it all before. I paid it. I was sad afterwards.

    Now, off to the classifieds..where is that MBG I saw the other day..
    With these chaps you really should ask them send you the evidence of this "offence". If they can't, and just keep sending threatening letters, just ask them to take the matter to court where they will be asked provide the evidence that has so far been lacking. The one time I've had this after that letter "the matter was referred back to the originator of the debt".

  • mollytherocker 24 Mar 2013

    collateral said:
    That might mean we need a higher minimum wage right now
    A higher min wage based on fuel prices would be very dangerous!

  • collateral 23 Mar 2013

    Meths said:
    moreflaps said:
    Petrol is more expensive now in real terms than at any other time -apart from during WW1 when it peaked at ~2 pounds/liter (in todays money).

    Cheers
    I can twist this:


    Minimum wage in 1999: 3.60
    minimum wage in 2012: 6.20


    Fuel in 2000: 76.9p
    fuel in 2012: 137.9

    So, working for an hour in McDonalds and using your money for petrol:

    2000: 4.7 litres.
    2012: 4.6 Litres.


    Okay, I twisted it a bit by taking the price from when it spiked in 2000 and by using minimum wage only, not average wage. But in the period of 2000 to 2005 we got used to very stable fuel prices.

    It's late and i cba checking the maths. I think I'm right.
    That might mean we need a higher minimum wage right now

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