GAS GUZZLERS HIT HARDEST BY BUDGET

With an increasing focus on environmental initiatives, it came as no surprise that there would be an increase in fuel duty featured in this year’s budget. Suffolk based Beatons Chartered accountants are encouraging individuals to keep up to date with the changes to the cost of running a vehicle.

The 2p increase in fuel duty has been delayed until October of this year. The increase was expected to be implemented by April this year, to the dismay of many motorists, and also business owners operating company car schemes.

However, by not-implementing the increase at all, the government would, according to campaigners for environmentally beneficial taxes, be severely undermining their own ‘green credentials’. It was ‘for environmental reasons’ therefore, that the chancellor announced an increase of 0.5p per litre in real terms in 2010.

Maintaining focus on the government’s aims to meet their targets under the Kyoto protocol to reduce carbon emissions, Mr Darling announced consideration to raise targets for emission cuts to 80% instead of the current 50%, by 2010.

John comments: “Transport accounts for 28% of the UK’s CO2 emissions, so as part of the initiative to reduce these emissions the government have always looked towards vehicles as a primary step, with strategies to encourage people to consider the environment in their choice of vehicle.”

2009 will see a major reform of the vehicle excise duty (VED), with new bands created as an incentive to manufacturers to produce and drivers to buy the cleanest cars. VED will rise by £5 per year, except for cars with a CO² emission level of 120 g/km or below, where there will be no increase. There will be a £100 increase for cars with CO² emission level of 226 g/km and above. The chancellor also announced that from 2010 there will be a first year exemption from road tax for cars with carbon emissions of less than 130g/km.

Mr Darling said he would also be setting aside funding to test proposals on road pricing, to reduce congestion and vehicle emissions.

John%20Oakley