Budget 2014: Fuel duty frozen and £200m pothole repair fund

Autumn Statement: what can you expect?
19 Mar, 2014 4:00pm Joe Finnerty

The Chancellor announces the 2014 Budget and confirms freeze on fuel duty as expected. New £1 coin to cost councils millions

Chancellor George Osborne announced an additional £200 million fund for pothole repairs while confirming the fuel duty freeze in his 2014 Budget statement.

The planned September 2014 fuel duty rise had already been scrapped in the Autumn Statement in 2013 and the Chancellor confirmed duty would be frozen until Spring 2015, again, in the 2014 Budget.

The news comes as a welcome relief to motorists, who saw petrol prices soar to as much as 138.32ppl in February 2013. Osborne said in the 2014 Budget that the latest freeze meant motorists would be paying 20p less than under the previous Government.

The Chancellor’s biggest announcement during the Budget statement was a new 12-sided £1 coin. While not directly affecting drivers, it will mean all parking meters and machines will have to be replaced in car parks. 

This accounts for around 100,000 machines in the UK and replacing all these will cost at least £50m to local authorities and private parking firms, according to the British Parking Association.

The figure could rise if meters and machines are upgraded at the same time to include all the new payment methods – such as chip and pin. While a major investment is needed, the new coin is expected to save parking operators £40 million a year as an estimated four per cent of £1 coins used currently in machines are counterfeit. The Royal Mint says the new coin will be the safest in the world.

The £200m pothole repair fund means councils are able to bid for money to repair roads ravaged by the winter floods. The current estimate for repairs is £400 million, on top of the £10.5 billion repair backlog that already exists.

Other motoring announcements came in the form of an extension on the discount for ultra low-emission vehicles and a two per cent tax on company cars with higher CO2 emissions. The M4 in Wales also received funding along with £270m for the Mersey Gateway bridge.

A rolling 40 year Vehicle Excise Duty (VED) exemption was also introduced for classic vehicles following last year's 1974 exemption. VED rates for cars, motorcycles and the main rates for vans will increase by inflation from April 2014.

This year's rates:

CO2 Emissions Annual rate First year rate
Up to 100g/km £0 £0
101-110g/km £20 £0
111-120g/km £30 £0
121-130g/km £110 £0
131-140g/km £130 £130
141-150g/km £145 £145
151-165g/km £180 £180
166-175g/km £205 £290
176-185g/km £225 £345
186-200g/km £265 £485
201-225g/km £285 £635
226-255g/km £485 £860
Over 255g/km £500 £1,090

What do you think of the Budget 2014? What do you think he should have announced for motorists? Let us know in the comments below, or check out the 2014 Budget on our sister site Carbuyer.

Disqus - noscript

Thanks George for scrapping the fuel duty - your too good to us motorists, twat.

Well, Woop-Te-Doo. I wouldn't like to be a drowning man depending on George Osborne for rescue. His idea of helping would be to defer attaching lead weights to your ankles....

I don't see many people driving as if as if the price of fuel is the first thing on their mind. Tens of thousands being forced to give up their cars and use public transport could only be a good thing.

It looks like you haven't used public transports in a while, or you live in one of the few places in england where public transport is perfect.
Because from where i live, public transport is expensive, unreliable and full of rude kids throwing crap at people on the bus at night or during school start/finish times of the day.
To not to mention the state of most Arriva buses:S.

Osborne is a smug twat who doesn't live in the real world.

I use the bus to go into town occasionally - but wouldn't like to be dependent on it as my only means of transport.

Anytime I use the bus, I always end up getting some kind of strange bug or Flu virus.

The bus heating is poor, so the windows are streaming with water condensation and everyone coughs and sneezes all around me.

I think most of those crusading for the use of public transport must be unable to drive, for one reason or another, and are jealous of whose who can enjoy the comfort of using their own private transport.

just like the rest of his colleagues

That's brilliant a clever man instead of putting fuel duty up & pricing people off the road & risking there livleyhood jobs in many cases business etc & in effect helping unemployment go up which would cost the government billions more he's just used his brain & it's only cost £1 billion a year thats a great saving & alot of money for just 1.89p a litre That just show's how many billions there making god knows where they're spending it it's certainly not on resuface worn out roads ?

or maybe they just don't have rubbish public transport services

I don't read this budget as an extension on the discounts for ultra-low emissions vehicles at all. Though they've written it to mask the truth. According to page 77 of the budget, company car tax rates on 0% EVs for the years 2015-2018 will ramp up like this: 5% - 7% - 9% - 12% and what looks like 15% in 2019/20.

Oh how wonderful, he froze the tax.... fat too much for the idiot to have dropped the tax considering we pay very nearly the highest tax on fuel in the whole of Europe! Well beef costs will still be high then, in fact food in general will still be high considering fuel has massive impact on it's pricing. The government is so short sighted these day's sometimes I am surprised they can see beyond their own eye lashes!

"This accounts for around 100,000 machines in the UK and replacing all these will cost at least £50m to local authorities and private parking firms, according to the British Parking Association."

Damn, they'll have to increase the amount of their phoney tickets then won't they Patrick?

How about repairing the roads, not just the pot holes, which form new pot holes within a few months and need repaired again...

AEX 1334
For more breaking car news and reviews, subscribe to Auto Express - available as a weekly magazine and on your iPad. We'll give you 6 issues for £1 and a free gift!

Sponsored Links