Motorists hit hard by 11th Budget

Road tax up, fuel prices up

21 March 2007 15:40 GMT / By Stuart Miles

Motorists have been hit hard by the latest Budget from Gordon Brown with Cars bear brunt of green taxation.

The chancellor has announced that he will be putting up fuel duty by 2p per litre from October, in line with inflation. It will also go up again by 2p in 2008 and 1.8p in 2009.

Road tax on highest-polluting vehicles is also up to £300 and to £400 from April next year. Cars included are not only most 4x4s but also some large people carriers and estate cars, hitting families who ferry around the kid the most.

But while the least polluting cars will continue to pay no duty, the next cleanest will see their rate cut to £35 from £50 for diesels and £40 for petrol cars.

And biofuels, which Mr Brown said helped fulfil the government's obligations on renewable fuels, would have their 20p a litre duty reduction extended to 2010, with the 40p a litre reduction for biogas extended to 2012.

Full tags

Car And GPS, Cars, Budget