Autumn Budget 2017: what does it mean for the motorist? | CAR Magazine

Autumn Budget 2017: what does it mean for the motorist?

Published: 22 November 2017 Updated: 22 November 2017

► Autumn Budget 2017
► At-a-glance look
► Fuel duty freeze & more

It’s Autumn Budget time and for 2017, it’s Chancellor Philip Hammond’s turn to try and get the country’s books in order. We’ve pulled out the key facts you need to know if you’re a motorist in the UK.

UK motorists buying a new car will be hit by a small VED tax increase if you’re buying a diesel car that doesn’t meet the latest emissions standards [RDE2, not Euro6], as the first year rate of VED increases by one band.

Diesel company car buyers will also be subject to a 1% company car increase. Hammond says that ‘no white van man or woman will be hit by these measures’, meaning the changes only apply to cars.

The Chancellor also has an electric and driverless car future in his sights, as he has set aside £400 million for funding a growing electric car charging infrastructure and £100m for the current plug-in car grant. Plus, if you own or buy an electric company car, you will not face a BIK charge if you plug in your car at work from next year.

EV and driverless car research and development will be boosted by £40m-worth of investment. ‘There is perhaps no technology as symbolic of the revolution gathering pace around us driverless vehicles. I know Jeremy Clarkson doesn’t like them, but there are many other good reasons to pursue this technology. Today we step up our support for it.’

UK car tax explained: how Vehicle Excise Duty (VED) works

Autumn Budget 2017: key facts

  • Fuel duty frozen
  • Temporary band rise for diesel car VED by one band
  • BIK on electric cars scrapped for those who charge at work
  • Company car tax will rise by 1% for diesel company cars
  • Proceeds from new taxes to go towards clean air fund
  • £400m EV charging infrastructure fund
  • £100m investment in the Plug-In Car Grant
  • £40m in electric and driverless car charging research

Autumn Budget 2017: the reaction

Simon Benson, director of motoring services at AA Cars

‘The Government’s decision to increase the first year VED rate on diesels that don’t meet the latest standards puts new pressure on consumers and manufacturers in a year that has already crippled the market for diesel cars.’ 

‘The move will come as yet another thorn in the side for motorists who were encouraged to buy diesels for more than a decade on the basis that they produced fewer CO2 emissions.’

Quentin Willson and Howard Cox, FairFuelUK

‘Pleased that the Chancellor has understood the debilitating effect of raising fuel duty on consumers, households, businesses and the broad economy. He knows that now is not the time for gesture politics and that’s why he’s listened to the everyday anxieties of FairFuelUK’s 1.5 million supporters and continued the duty freeze.’

Mike Hawes, Chief Executive of the SMMT

‘The investment in charge points and new incentives to encourage the take up of electric cars is a positive step to boost buyer confidence, which will be essential to increasing market share.’

Check out more motoring issues news here

By Jake Groves

CAR's deputy news editor, gamer, serial Lego-ist, lover of hot hatches