George Osbourne promised at the beginning of today's crisis budget that he wouldn't hide the hard choices from the British citizens. He positively didn't, but the motorist was hit no harder than anyone else.
The Chancellor promised that £4 out of each £5 required to reduce the national deficit would be establish through spending cuts rather than tax rises, but it is the headline tax rise which will brunt on the nation's drivers.
As some predicted, Mr Osbourne chose to augment the rate of VAT from 17.5 per cent to 20 per cent from January 4 2011.
The cost at the pumps will increase thanks to the rise, but there is no accompanying rise in fuel duty beyond that which was previously expected.
The additional 2.5 per cent will also brunt on the cost of buying a car, as well as having one serviced. As an example, the cost of a £16,000 Ford Fiesta 1.4 TDCI (one of the country's most popular cars) is set to increase by £400.
In line with the Conservatives pre-election proposals, the Chancellor suggested that the brunt of oil prices on the cost at the pumps would be examined to see if there's a way of stabilizing them in the future. Whether this results in the adoption of a fuel duty stabilizer remains to be seen.
The Liberal Democrat policy of a rebate for pastoral areas is also set to be studied.
The future of the Department of Transport's budget will be detailed in October, but with the defenseless departments facing a 25 per cent cut in their spending it is secure to presume that some road building projects will have to be shelved.
The Chancellor promised that £4 out of each £5 required to reduce the national deficit would be establish through spending cuts rather than tax rises, but it is the headline tax rise which will brunt on the nation's drivers.
As some predicted, Mr Osbourne chose to augment the rate of VAT from 17.5 per cent to 20 per cent from January 4 2011.
The cost at the pumps will increase thanks to the rise, but there is no accompanying rise in fuel duty beyond that which was previously expected.
The additional 2.5 per cent will also brunt on the cost of buying a car, as well as having one serviced. As an example, the cost of a £16,000 Ford Fiesta 1.4 TDCI (one of the country's most popular cars) is set to increase by £400.
In line with the Conservatives pre-election proposals, the Chancellor suggested that the brunt of oil prices on the cost at the pumps would be examined to see if there's a way of stabilizing them in the future. Whether this results in the adoption of a fuel duty stabilizer remains to be seen.
The Liberal Democrat policy of a rebate for pastoral areas is also set to be studied.
The future of the Department of Transport's budget will be detailed in October, but with the defenseless departments facing a 25 per cent cut in their spending it is secure to presume that some road building projects will have to be shelved.
View this site: Auto Transport | car transport
0 comments:
Post a Comment