Budget 2012 – at a glance

  • 2012 Budget at a glance
  • What it means for motorists
  • Get the facts here
George Osborne
George Osborne
Chancellor George Osborne has delivered his Budget 2012 statement.

Fuel duty has been seen as the foremost issue for motorists, but the 2012 Budget also affects how much you will pay in road tax and company car tax.

The Chancellor also outlined the Government’s plans for the road network and other long-term policies that will have an impact on drivers.

Main fuel duty
Fuel duty will increase by 3p per litre on August 1, as previously planned. This will add around £1.81 to a 50-litre refill of unleaded.

There are no further rises in duty planned. The existing fair fuel-stabiliser system means that above-inflation rises in fuel duty will apply only if the price of oil drops below £45 a barrel - it's currently at around £79 a barrel.

VED
VED rates (road tax) will go up by the rate of inflation from April 1.

Road tax rates for 2012

VED (road tax) reform
The Government will consider whether to reform road tax over the medium-term period, to ensure that all motorists continue to make a fair contribution to the sustainability of the public ?nances – and to re?ect continuing improvements in vehicle fuel-efficiency.

The Government plans to develop a direct-debit system to allow motorists to spread the cost of road tax payments. The Government will seek the views of motoring groups on these measures.

Company car tax rates 2014–16
The percentage of list price subject to tax will increase by 1% for cars emitting more than 75g/km of carbon dioxide, to a maximum of 35% in 2014–15, and by 2% to a maximum of 37%, in both 2015–16 and 2016–17.

From April 2016, the Government will remove the 3% diesel supplement, so that diesel cars will be subject to the same level of company car tax as petrol cars.

From April 2015, the ?ve-year exemption for zero carbon and ultra-low-carbon-emission vehicles will come to an end, as legislated in the Finance Act 2010. The appropriate percentage for zero-emission and low-carbon vehicles will be 13% from April 2015 and will increase by 2% in 2016–17.

Toll roads
The Government will carry out a feasibility study into new ownership and ?nancing models for the national road network, learning lessons from the privatisation of the water industry. It will report on progress by the Autumn Statement 2012.

Other news
The Government will discuss plans to increase 'airport capacity' in the south east this summer.

There will be major investment in the rail network in the north west.
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