The new Spring statement has been
given by the Chancellor, Philip Hammond. This statement gives an update on the
state of the UK economy, but what will it mean for drivers?
Predictions for the UK Economy
However, the performance of the UK on the worldwide stage is disappointing. The UK economy is performing so badly that the UK is predicted to be the worst performer in the G20 in 2018.
Tax and spending plans
Decisions to come
We can expect the beginning of a consultation in the next few days on the possibility of reducing vehicle excise duty on the least polluting vans. Focusing on CO2 emission and not on air quality, any reduction would likely be applied prospectively, with no retrospective action allowed. There will also be the opportunity to seek views on the development of first year bands, similar to what happens with cars.
Committees will also be considering the possibility that providing tax relief on red diesel is impacting urban air pollution.
Company Car Tax review brought forward
As part of the statement, it was also revealed that the revaluation of business rates would be pulled forward to 2021. This will impact on motorists and business owners alike, as company car tax rates will more than likely be reviewed as a part of this. With all this on the table, we will be watching with interest when the Autumn budget is revealed.