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Sunday, 22 November 2009

Budget 2009 - motoring and transport

  • Published: Wednesday, 22 April 2009

Fuel Duty will go up from 1 September 2009. Drivers are also being offered discounts of £2,000 if they scrap their old cars.

New car discounts

For a temporary period, consumers will get a discount of £2,000 on a new vehicle if they scrap a vehicle more than 10 years old that they have owned for more than 12 months.

For more information, follow the link below.

Fuel Duty

  • Fuel Duty will increase by two pence per litre on 1 September 2009 and by 1 pence per litre in real terms each year from 2010 to 2013 – saving two million tonnes of CO2 (MtCO2) per year by 2013–14
  • duty on rebated oils will increase in line with main Fuel Duty increases on the same dates

 Fuel type

 Current rate (pence per litre unless stated)

 New rate (pence per litre unless stated, from 1 September 2009)

 Ultra-low sulphur petrol / diesel

 54.19

 56.19

 Sulphur-free petrol / diesel

 54.19

 56.19

 Biodiesel

 34.19

 36.19

 Bioethanol

 34.19

 36.19

 Liquefied petroleum gas used as road fuel

 24.82 per kg

 27.67 per kg

 Natural gas used as road fuel

 19.26 per kg

 22.16 per kg

 Rebated gas oil (red diesel, eg. gas oil or kerosene)

 10.42

 10.80

 Fuel oil

 10.00

 10.37

Vehicle excise duty (VED)

Changes to this year’s VED rates will take effect from 1 May 2009.

For full details of changes to VED rates, follow the link below.

Company Car Tax (CCT)

In response to advances in vehicle technology and falling new-car CO2 emissions, from 6 April 2011:

  • the CO2 emissions thresholds for main CCT bands will be shifted down by 5g CO2 per km
  • the £80,000 cap on company car list prices for calculating company car benefit will be abolished, making sure that drivers of the most expensive company cars pay a fair amount of tax
  • outdated discounts for early-uptake Euro 4 standard diesel cars, higher-emitting hybrid vehicles, gas-powered and biofuel-capable cars will be abolished, in favour of a system that rewards lower tailpipe CO2 emissions

Rail investment

The Government confirmed in Budget 2009 that over £15 billion will be invested in the rail industry during the next five years.

Additional links

Budget 2009

Budget 2009 information

Details of this year's Budget

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