While this year’s Budget had more surprises than most, one of the most eye-catching announcements was the decision not to increase fuel duty. Rumours had been circulating that the Treasury were looking to end the decade-long freeze on duty in order to help raise tax revenues and promote the uptake of electric vehicles (EV). The Office for Budget Responsibility (the OBR) had suggested that a 2p rise would generate an extra £4bn a year. In the end, however, the Government decided that borrowing more was the way forward and that is how it will fund its £27bn road building plans.
An interesting related announcement was that of the reduction in the EV grant for new vehicles from £3,500 to £3,000. At a time when climate change and emissions are a hot political issue, cutting the grant might seem strange, but it coincides with a three-year extension to the grants which were set to end this year. Both of these announcements are good news for fleet and private car drivers.
If you’d like any help protecting your vehicle – whether you’re a fleet or a private car driver – then please get in touch with your local Coversure office today. They will be happy to give you all the help you need to protect your vehicles.