The Budget March 2016 – What Does it Mean for Motorists?
With the national debt currently totalling around £1.6 trillion, that’s roughly £24,000 for every adult and child in the UK, there were grim predictions that motorists would be hit hard this budget ….. But drivers can breathe a sigh of relief, things were nowhere near as bad as expected! Here is the Rivervale Car Leasing guide to how motorists will be affected by the 2016 budget this March...
Fuel duty has again been frozen! This will make the 6th year in a row and the longest freeze in fuel duty for nearly 40 years. In money terms this is likely to save the average family around £75 per year and the average small business owner with a van around £270 per year.
We will see investments in the transport network over the next parliament to upgrade and improve roads. The announced projects are as follows;
- The M62 will be made into a 4 lane smart motorway.
- The A66 and A69 will be upgraded
- There will be £75 million spent on developing a case for a tunnel road that will be built between Manchester and Sheffield known as the Trans-Pennine Tunnel. The government would like to make commuting, to what they call the ‘Northern Powerhouse’, easier for workers. The proposed tunnel will be 18 miles long, which has led experts to warn this length may cause poor visibility and claustrophobia for drivers.
- £50million will be added to the Pothole Action Fund for England in 2016/2017, allowing local authorities to fill nearly a million potholes.
- £130 Million has been allocated to repair roads and bridges that suffered damage in various storms that hit Britain during 2015 and so far in 2016.
- A trial of comparative fuel price signs is due to start this spring on the M5 between Bristol and Exeter, helping motorists find the best price for fuel on the go and save money.
The Severn Bridge
From 2018 those crossing from England to Wales will not need to pay so much. Crossing charges are being halved. Charges currently stand at £6.60 for a car and £19.80 for a lorry.
A rise in insurance tax provides bad, but not terrible, news to those who find their car insurance premiums on the high side already. Insurance tax was previously raised from 6% to 9.5% in November 2015. In comparison the rise announced this March is not as shocking at 0.5%, so insurance tax will be 10% from October 1st 2016.
This will add a few more pounds to the cost of roadside assistance as well as car insurance for every motorist.
The Government has made no secret of the fact that they want the UK to be the World leaders in the move to driverless Vehicles. This budget has outlined the next moves they plan to take;
- Trials of driverless vehicles will begin on motorways and A roads as early as 2017
- £15million will be spent on creating a ‘connected corridor’ on the stretch of road between London and Dover. This will allow cars to communicate wirelessly with the infrastructure and with other connected vehicles.
- This summer will see the start of a consultation process that aims to assess regulations surrounding driverless vehicles on major roads in the future.
It’s mainly positive news for everyone jumping in their car this morning. This budget should keep Britain moving …. well, at least until we see what the next budget has in store!
The comments above do not necessarily reflect Rivervale's views unless clearly stated.
17 March 2016
Written by Natalie Faughy