Budget 2010 latest

Want to know how yesterday's budget affects motorists? Find the salient points here

Budget day yesterday, so what do you need to know?

1. VAT goes up

Subscribe to evo magazine

Subscribe today to have every issue of evo delivered straight to you. You'll SAVE 39% on the shop price, and get evo for its original cover price for a whole year!

VAT will be increased from 17.5% to 20% from the 4th January next year. So, if you’re buying a new car, then unless the manufacturer in question holds its prices, you’re going to be paying a few hundred quid more: a Renaultsport Clio 200 will rise from £17,710 to £18,087, while after the rise an £87,455 Jag XJ Supersports will cost £89,316.

2. Insurance tax increases

You’ll be paying more for your car insurance, too. The standard rate of Insurance Premium Tax will increase from 5% to 6% and the higher rate will go up ffrom 17.5% to 20%.

3. Fuel prices static

Fuel duty remained static in the budget, although there’s already a planned rise in place for 1st October, when prices will increase by 1 pence per litre. On January 1st 2011 fuel will go up by a further 0.76 pence.

As a footnote to that, the government will also review fluctuating fuel prices with the aim of creating a fair fuel stabiliser and a possibly fuel duty discount for remote areas

4. Company Car Tax increases

This is going to be further focused on taxing higher emissions vehicles. From April 2011 the 15% tax band will be lowered by 5g/km so that it includes cars putting out between 121 and 129g/km of CO2. Above that tax increases by 1% per 5g/km up to a maximum of 35%. Discounts on higher emitting hybrid cars such as the Lexus RX400h will also be removed.

5. Speed cameras

OK, so it might not affect you directly, but central government is withdrawing funding for speed cameras, forcing local authorities to meet the costs themselves. We’re not sure how this will pan out at the moment, but it could well mean fewer speed camera locations, but even more pressure on each one to make them pay their way.

Most Popular


Ferrari Omologata revealed – latest bespoke commission a V12 super coupe

One-off Ferrari Omologata revealed with bespoke body 789bhp V12 engine
25 Sep 2020
BMW M3 saloon

All-new BMW M3 Competition revealed – an icon reborn

This is the all-new BMW M3 Competition saloon which will join the M4 Competition coupe in BMW M’s new M3/4 family
23 Sep 2020
Peugeot 508

2020 Peugeot 508 Sport Engineered unveiled – BMW 3-series rival turned to 355bhp

Peugeot’s first Sport Engineering model has finally been uncovered, the hot 508 featuring a range-topping hybrid powertrain
24 Sep 2020
Hyundai i30 N

Updated Hyundai i30 N revealed with optional dual-clutch ‘box

It was the hot hatch that upset the status quo, and now the i30 N is back with more power and tech
24 Sep 2020