Budget 2020: Key points at a glance
The Chancellor of the Exchequer, Rishi Sunak, has revealed the Government’s spending plans for the next 12 months. Discover how the Budget 2020 will affect you.
Fuel Duty
Fuel duty remains frozen for the tenth consecutive year. The Chancellor claims the move will save the average motorist up to £1200 a year, with the planned 2p-per-litre tax hike being shelved for another year.
Roads
The UK's road network gets a new £500m annual fund to fix potholed roads. This means £2.5 billion will be spent on fixing potholes over the next five years.
Vehicle Excise Duty (Road Tax)
VED rates will rise in line with the RPI inflation rate on 1 April 2020. That means the standard rate for a car registered on or after 1 April 2017 will increase to £160, along some significant rises in the first year rate (commonly known as the showroom tax). Owners of older cars, meanwhile, will typically pay an additional £5 per year.
VED for electric cars is officially free
From 1 April, all electric car owners will qualify for free road tax VED. Previously, EVs which cost more than £40,000 when new, incurred a VED rate of £320 per year for five years in what has become known as 'premium tax'.
Plug-in electric car grant cut to £3000
Electric car buyers will face higher list prices from 12 March after the Government cut the plug-in car grant subsidy by £500 to £3000. Cars costing more than £50,000 are also now exempt from the Government-funded discount.
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