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Budget update

Budget update

The Chancellor delivered his 2018 budget statement at the end of October, the last before Brexit, announcing better than expected public finances allowed for more Government spending than previously thought.

Of particular note is the review of Worldwide Harmonised Light Vehicle Testing Procedure (WLTP), which will examine the impact on Vehicle Excise Duty (VED) and company car tax (CCT), and will report in spring 2019.

Key motor specific announcements:

  • In 2019, fuel duty will remain frozen for the ninth year in a row.
  • From 1 April 2019 Vehicle Excise Duty (VED) rates for cars, vans and motorcycles will increase in line with RPI. To support the haulage sector, the government will freeze the Heavy Goods Vehicle (HGV) VED for 2019-20.
  • The Government has published a summary of responses from the consultation on VED reform for vans, published in May 2018, which includes proposals to introduce environmental incentives from April 2021. The Chancellor announced that bands and rates will be set out ahead of Finance Bill 2019-20.
  • From 6 April 2019 fuel benefit charges for company vehicles will increase in line with RPI and the van benefit charge will increase in line with CPI.
  • The Statement included a £28.8 billion National Roads Fund, paid for by road tax, includes £25.3 billion for the Strategic Road Network (motorways, trunk and A roads).

Also announced was a cut in the amount smaller businesses pay to employ an apprentice, with the Government will also be funding 95% of the costs associated compared to 90% funded currently.