TaxPersonal TaxBudget 2000: Fuel and transport

Budget 2000: Fuel and transport

Chancellor Gordon Brown pledged an additional £280 million to improve thetransport network by creating incentives for cleaner vehicles, reducingcongestion and boosting competitiveness in the UK haulage industry.

In line with inflation road fuel will rise by 2 pence a litre. Increases onpetrol and diesel will be effective from 6 pm today.

In a bid to encourage motorists to buy environmentally-friendly cars, thechancellor announced a £55 cut in Vehicle Excise Duty (VED) to owners of smallercars (1,100cc to 1,200cc). The measure will take effect from 1 March 2001.

The VED rate on 40 tonne/5-axle lorries will receive a cut of £1,800, from£5,750 to £3,950. Due to recommendations from the Commission for IntegratedTransport (CfIT), 44-tonne/6-axle lorries will be introduced from 1 January2001. According to the CfIT, 44-tonne lorries do less damage to roads becauseof their better weight distribution.

The DVLA will underpin the Treasury’s initiatives through a publicity campaignin which it will explain the changes and promote the environmental benefits.

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