In his final Budget before the UK’s planned departure from the EU, Chancellor Philip Hammond declared that the era of “austerity is coming to end.”
For motorists, the main budget headline was a £30 billion boost for the nations’ roads, which the Chancellor called the “biggest-ever single cash investment” in the UK’s transport network.
But how else does the Budget affect motorists? Here, we take a look at the announcement in more detail.
Fuel Duty Frozen
As expected, the Chancellor announced that fuel duty would remain frozen for the ninth successive year, bringing the total saving to the average car driver to over £1,000. The Chancellor’s announcement will provide an ongoing boost for motorists.
Not a bad start!
Extra Funds For Potholes
The Chancellor recently announced a £420 million injection, intended on repairing damaged roads and keeping bridges open and safe. A further £150 million will help improve local junctions, allowing better access to workplaces, town centres and community facilities.
These funds are in addition to the annual £1 billion highways maintenance budget and the recently-announced £300 million potholes fund.
Investment into Roads
A headline announcement sees £28.8 billion allocated for upgrades to major roads (motorways, A roads, and designated local roads of strategic importance) to take place in the five years from 2020/21.
This investment will be largely funded by vehicle excise duty — the first time that the tax has been “ring-fenced” for use on the roads since former Chancellor George Osbourne pledged to do so in 2015.
Electric Vehicle Charging
In good news for the development of electric vehicle infrastructure, the Chancellor announced plans to extend the Enhanced Capital Allowances (ECAs) for companies investing in electric vehicle charge points to 31 March 2023.
Benefit in Kind on Electric Vehicles
Despite the RAC calling for the government to bring forward by a year a reduced rate for electric vehicles, the budget documents appear to show that there are currently no plans to do so.