Philip Hammond’s 2017 Budget contained a number of measures which will affect motorists – most notably a one-off tax rise for diesel car drivers.
As from April 2018, new diesel cars that fail to meet the latest emission standards will be subject to an increase in their first year of road tax.
The move – designed to help finance the Government’s new £220m clean air fund – will only apply to cars, not “white van men and women”.
How much tax is levied will depend on a car’s CO2 emission band. For example, Ford Fiesta drivers would have to pay an extra one-off £20, while Land Rover Discovery owners would have to find an additional £400.
Drivers purchasing a new car will be able to avoid this charge as soon as manufacturers bring forward the next generation cleaner diesels.
In another announcement designed to improve the UK’s air quality, £400m is being made available to help fund the charging infrastructure for electric vehicles. There will also be a further £100 million in subsidies to encourage more motorists to go electric.
The chancellor has also chosen to freeze fuel duty for the seventh year in a row, with this tax held at 57.95p per litre since the March 2011 Budget.
He estimated that not increasing fuel duty will save the average car driver £130 a year and the average van driver £350 a year.
