Mobile businesses to benefit from fuel duty freeze
18th March 2015 | News
Small businesses that operate on the move are expected to benefit from Chancellor, George Osborne’s Budget 2015 as the coalition delivers a further freeze for fuel duty.
In the 2014 Autumn Statement, Osborne announced another fuel duty freeze until May 2015, with an increase anticipated this September.
However, the Chancellor has once again cancelled this, claiming the longest duty freeze in two decades.
Osborne believes that putting off the duty rise in September will result in further savings of “£10 a tank”, though this is largely dependent on the average cost of fuel at local forecourts.
In addition, the Government has responded quickly to emerging autonomous vehicle technology by pledging an additional £100 million of funding as the Government seeks to push the UK at the forefront of this emerging industry.
As expected the cost of Vehicle Excise Duty (VED) will rise in line with the rate of the Retail Price Index (RPI) from April 1st, while from April 1st 2016 any vehicle manufactured before January 1st 1976 will be exempt from paying VED.
Company car drivers will be encouraged to hear that in 2019-20 the rates for ultra-low emission vehicles will increase at slower rates than previously announced.
David Bizley, chief engineer, RAC, said: “Mr Osborne has clearly taken an opportunity to maintain the truce in the “war on motorists” whilst tying the hands of any new incumbent of No 11.
“Freezing fuel duty beyond the end of this Parliament is therefore a very shrewd move as it would be extremely unpopular for any future Chancellor to unfreeze it.
“While the Chancellor has cancelled September’s scheduled fuel duty increase we would ideally have liked to see him scrap the duty escalator altogether.”