The Budget has been announced today by Chancellor Philip Hammond.
Under the Budget Chancellor Philip Hammond announced that there would be a £28.8 billion cash injection to improve road surfaces and repair damage.
UK roads are plagued with potholes and damage due to extreme weather conditions and they cost motorists hundreds of pounds in damage every year.
Congestion and traffic is also another key area that the investment announced in the Budget is expected to improve.
Following two consecutive years of car tax increase announcements in the Budget, many motorists believed that rates could increase for the third year.
However, the Chancellor did not announce any further increase to car tax for diesel motorists in the UK.
Despite this, motorists in Britain could still be feeling the effects of the car tax increase for diesel introduced in April this year.
Chancellor Philip Hammond announced that any new diesel car sold and registered after April 1st, 2018 would face paying one car ta band higher if they didn’t meet a new emissions standard.
What is problematic about this announcement is that the new Real Driving Emissions Standard is not mandatory for car manufacturers to adhere to until 2020.
This means that the vast majority of new cars will not be able to meet this standard, therefore, face paying higher vehicle excise duty.
The increase adds between £20 and £500 on the cost of car tax in the first year for drivers.
What this means is that electric cars that cost over £40,000 will now no longer be diesel from the increased car tax rates.
Here are new car tax bands before and after April 2018 after the extra diesel charge was introduced:
1 – 50 g/km CO2
PRE-APRIL 2018 RATE:£10
FROM APRIL 2018: £25
51 – 75 g/km CO2
PRE-APRIL 2018 RATE: £25
FROM APRIL 2018: £100
76 – 90 g/km CO2
PRE-APRIL 2018 RATE: £100
FROM APRIL 2018: £120
91 – 100 g/km CO2
PRE-APRIL 2018 RATE: £120
FROM APRIL 2018: £140
101 – 110 g/km CO2
PRE-APRIL 2018 RATE: £140
FROM APRIL 2018: £160
111 – 130 g/km CO2
PRE-APRIL 2018 RATE: £160
FROM APRIL 2018: £200
131 – 150 g/km CO2
PRE-APRIL 2018 RATE: £200
FROM APRIL 2018: £500
151 – 170 g/km CO2
PRE-APRIL 2018 RATE:£500
FROM APRIL 2018: £800
171 – 190 g/km CO2
PRE-APRIL 2018 RATE: £800
FROM APRIL 2018: £1,200
191 – 225 g/km CO2
PRE-APRIL 2018 RATE: £1,200
FROM APRIL 2018:£1,700
226 – 255 g/km CO2
PRE-APRIL 2018 RATE: £1,700
FROM 2018:£2,000
Over 255 g/km CO2
RATE: £2,000