Chancellor George Osborne has today revealed his summer budget for 2015. Here we have extracted the points, which will affect motorists.
Changes to Vehicle Excise Duty (Road Tax)
According to Osborne the advancement of technology now means three in four motorists don’t have to pay VED. However from 2017 new bands will be created for new car buyers – zero, standard and premium. There will be no change to road tax for existing vehicles, but most new cars will come with a standard VED charge of £140. Electric cars will still be free from paying any VED. The money raised has been promised to go towards the Roads Fund to pay for investment to improve British roads.
Fuel Prices remain frozen
Road users will be happy to hear that fuel duty has been once again frozen and will not rise.
MOT at four years?
Osborne has announced that the government will consider extending the MOT due date of a new vehicle by one year. Currently all new vehicles have their first MOT after three years, but the government will deliberate whether this should change to four years for cars and motorbikes. It leaves us questioning the impact on first time MOT pass rates and could put road safety into questioning.
Find out common MOT failures by make, model and year.