Budget 2010: Overview
The main highlights were:
• Changes to the planned 3p fuel duty increase, which will now be phased in, in three stages
• Company car tax to be halved for ultra-low carbon vehicles for the next five years.
• 100% first-year capital allowance for zero-carbon goods vehicles.
• Confirmation of the VED and "showroom tax" changes announced in the Pre-Budget Report. Vehicles emitting less than 130g/km CO2 will pay no VED; vehicles with over 165g/km will pay additional VED for the first year graduated up to £950.
• £100 million set aside for repairs to local roads and potholes plus £285 million for improvements to motorways including by expanding capacity by allowing hard shoulder running.
• The creation of a new green investment bank – based on £1 billion of public cash matched with private funds. This will be used to fund green transport and energy projects.
• A cut in business rates for one year from October, leading to a stated tax reduction for over half a million small businesses in England, 345,000 of which will pay no business rates at all.
• Confirmation that the Government is proceeding with the proposed 1p hike in National Insurance Contributions (NICs), which will come into effect from April 2011.
• Duty on beer, wine and spirits increases 2% – cider up 10% above inflation
• Tobacco duty will rise by 1% above inflation this year, then 2%.For more of the latest industry news, click here.