Wednesday’s Budget marked the start of a bad eight days for drivers, with a trio of changes that affect almost every motorist.
Firstly, as of next Thursday, 1 April, fuel duty was due to go up by around 3p, pushing the price of a litre of unleaded perilously close to the 120p mark and a new record high. But Alistair Darling has changed his mind and it will only rise by a penny now with a further 2p to be added before January. Worth being happy about? Not really. Experts predict pump prices are only going to get higher.
Secondly, next Thursday still marks the date when a new ‘showroom tax’comes into force. This only affects new car buyers, and is a first year of ownership road tax supplement designed to encourage drivers to pick greener models in the first place. Based on CO2 emissions, it adds a one-off cost of up to £950 on the biggest polluters. The most eco-friendly vehicles, with emissions under 130g/km, are exempt.
And finally, if you have been dithering about whether to trade in your old banger for a new car and claim the £2,000 discount offered by the Scrappage Scheme, do it quick. That finishes next Wednesday. The good news is that in order to prevent a total collapse in new cars sales, several volume manufacturers have launched post-Scrappage incentive schemes to help convince you their products are right for you. Great if you’re in the market for a new car, tough luck everyone else. We just have put up with petrol price rises.
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