The motoring headlines from the Emergency Budget.
- The Government will increase the standard rate of Value Added Tax (VAT) to 20% from 17.5% from January 4, 2011
- The Government will increase the standard rate of Insurance Premium Tax (IPT) to 6% from 5% and the higher rate to 20% from 17.5% from January 4, 2011
- Employee and employer National Insurance rates will increase as announced in the March Budget by the previous Labour Government. However, to help offset the 1% rise in employer NI the coalition Government announced that the level at which employers start to pay NIC will increase by £21 per week above indexation from April 2011. The value of indexation will be determined by data available in the autumn.
- Following the October 2010 Spending Review, the Government will put forward detailed proposals on the creation of a Green Investment Bank to help the UK meet the low-carbon investment challenge. The Government is considering a wide range of options for the scope and structure of the Bank. The options will be evaluated for effectiveness, fiscal affordability and transparency.
- There will be no increases in fuel duties over and above those announced in the March Budget. However Chancellor of the Exchequer George Osborne Chancellor has asked the Office for Budget Responsibility to undertake an assessment over the summer of the effect of oil price fluctuations on the public finances. Informed by this assessment, the Government will examine options for the design of a fair fuel stabiliser. Reflecting the coalition commitment to investigate measures to help with fuel costs in remote rural areas, the Government is considering the case for introducing a fuel duty discount in remote rural areas. This includes possible pilot schemes in Scotland.
- Company car tax changes announced in the March Budget will go ahead.