What did the Budget mean for drivers
Drivers are being hit with higher costs than ever. Insurance, servicing and used model prices remain very high and even the more day-to-day costs remain expensive. As a result, many motorists are feeling the pinch when it comes to keeping their cars on the road.
In the latest Budget, Chancellor Jeremy Hunt revealed something that would be retained to help drivers keep costs down. But what was it and what does it mean for you?
Fuel duty freeze
The main takeaway in this latest Budget has been a freeze on fuel duty. It means that the 5p cut implemented in March 2022 will be kept on for another year with fuel duty not increasing in line with inflation.
A Treasury person has said that the move is prompted by the falling cost of fuel, while Jeremy Hunt said the freeze brings “total savings since the 5p cut was introduced to around £250”.
What does it mean for drivers?
It’s believed that this freeze will save drivers £50 per year on average, though when it was first announced it was said that the cut would help drivers to save £100 a year. The freeze means that fuel duty remains locked at 52.95p per litre.
Before the 5p cut was introduced in 2022, fuel duty had remained at 57.95p since March 2011.
What has the industry said in response?
RAC head of policy Simon Williams said: “With a general election looming, it would have been a huge surprise for the Chancellor to tamper with the political hot potato that is fuel duty in today’s Budget.
“But, while it’s good news that fuel duty has been kept low, it’s unlikely drivers will be breathing a collective sigh of relief as we don’t believe they’ve fully benefited from the cut that was introduced just two years ago due to retailers upping margins to cover their ‘increased costs’.”
Was anything else expected from the Budget?
Several groups expected there to be more financial assistance introduced to help stimulate the take-up of electric cars. Ian Johnston, Osprey Charging CEO, said: “Today’s announcement of the spring budget from the Chancellor is a huge missed opportunity to increase access to public EV charging for the UK’s drivers. There have been calls from across the industry to lower the VAT rate on public charging from 20% to 5%, in line with that of charging at home, which would be a massive boost for EV drivers, and those considering the switch to electric.”
What can Vertu Lease Cars do to help?
If you are interested in going electric to help bring your costs down we have teamed up with Project EV who can help install at-home chargers. Or if you are a business looking to save money Vertu Lease Cars offers a great salary sacrifice car scheme to help keep your costs down.
