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It was announced that “Every single penny” raised by vehicle excise duty will go into a new road fund designed exclusively for highways maintenance. George Osborne revealed this news in one of the biggest reforms to motoring in recent years.

Vehicle excise duty will also be overhauled from 2017 because figures show that under the current scheme three quarters of all new cars would be exempt.

The 2017 system will see new cars paying based on updated emissions ratings that take new technology such as hybrids and pure-electric cars into account. After the first year, there will be three duty bands – zero emission, standard and premium.

Osbourne believes no extra revenue will be raised by the new system, claiming it’ will be more secure and fairer.

So we will see zero emission cars continue to benefit but this will bring higher road tax charges for low emission cars. If you are looking into purchasing a low emissions vehicle in the near future ensure you are aware of the changes.

Fuel duty will also be frozen for the rest of the year, as previously announced, while the time limit on having the first MOT carried out will be stretched from three to four years. Both a warm welcome we feel.

In summary there are some changes to come, all of which were anticipated within the industry and also positive news for fuel duty and fiesta MOT’s.

If you are planning your next vehicle change, why not give us a call on 01243 510650 or email sales@gwacars.com

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