The Government has announced their 2020 Budget, but what does it mean for motorists?
With other larger issues like Coronavirus and Brexit occupying both the government’s time and money, this year’s budget didn’t bring too many changes impacting motorists. Many things have remained the same, while additional budget has been confirmed to support infrastructure repairs and investment in green technology.
What’s stayed the same?
Before we go through what’s new, let’s talk about what remains. Despite concerns that it may increase, the 2020 budget included the continued freeze on fuel duty. This marks the 10th year in a row that fuel duty has remained the same. Good news for drivers, as this combined with the drop in crude oil prices should see prices at pumps continue to fall.
Vehicle Excise Duty also remains the same in terms of the system. However, rates in the first year will be changing as the CO2 figures used to decide a cars group changes from NEDC to WLTP.
No news for business car drivers, with changes to benefit-in-kind rates having already been announced. This includes a 0% rates that have zero CO2 emissions.
Boost funding and continued Plug-in Grant to increase electric vehicle uptake
Good news if you’re considering buying an electric vehicle for the next few years. First, the government has extended the Plug-in Car Grant to 2022-2023. However, it has been reduced by £500 from £3,500 to £3,000.
Electric charging infrastructure has also been given a boost in the 2020 budget. £500 million has been promised for expanding the UKs charging hubs. The aim is to have drivers be no more than 30 miles away from a rapid charging hub.
Road repairs fund improved
With Storm Ciara and Storm Dennis having battered the UK in quick succession, the need to make major repairs to the UK’s roads has grown more urgent. In response to the calls for the government to stop underinvesting in our roads, additional infrastructure funds have been confirmed. This includes a promised £2.5 billion to fill in the growing number of potholes.