Low emission company car tax boost in 2015 Budget
Chancellor announces that company car tax for low emission vehicles will increase slower than previously planned
Company car tax for low emission vehicles will increase more slowly than previously planned from 2015 onwards, the Chancellor of the Exchequer announced in his Budget speech today (March 18).
Announcing the Budget in the House of Commons earlier, the Chancellor George Osborne said: “To encourage a new generation of low emission vehicles we will increase their company car tax more slowly than previously planned, while increasing other rates by 3% in 2019-20.”
Chancellor George Osborne unveiled his Budget on today (March 17)
The government said this followed on from recent changes to the company car tax regime, which have “supported the move to fuel efficient cars while ensuring the benefit-in-kind is taxed fairly”.
However, the planned rise in fuel duty has once again been scrapped, meaning no increase in September and marking the longest freeze in fuel duty for 20 years.
In his speech, Mr Osborne said that the government’s deficit reduction plan established five years ago was “working” and claimed that “Britain is walking tall again” with the economy growing faster last year than “any other major advanced economy in the world”.
He said the government would also “back our brilliant automotive industry” by investing £100 million “to stay ahead in the race to driverless technology”.
The boost for company low emission car tax came in a Budget announcement otherwise lacking in specific policy regarding air quality and emissions.
However, the document does confirm that Highways England — a newly established arm’s-length government body from April 1 — will launch its delivery plan before the end of the current parliament which will set out further detail on the roads investment programme from 2015-2020.
Confirmed last week (March 12) the establishment of Highways England will see it manage the roll out of the government’s planned ‘roads revolution’ to build , a move which has been criticised by the Green Party and air quality campaigners (see airqualitynews.com story).
Also confirmed in today’s Budget, the government and Transport for the North will shortly publish the interim report of the Northern Transport Strategy, which will “set out the strategic options for future transport investment in the north of England”.