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Budget - VED changes Volume 1. - NARU

***** This thread is now closed, please CLICK HERE to go to Volume 2 *****


Budget 2008 announces reform of the vehicle excise duty (VED) structure. From 2009, VED will be restructured with new bands, based on carbon dioxide so that people gain financially by choosing the car with the best environmental performance in a given group. The financial difference between the most and least polluting cars will increase, so that making a small change in car emissions has a greater financial impact. From 2010, there will be a new higher first-year rate based on carbon dioxide emissions, to influence purchasing choices.

Specific changes include:
?? six new VED bands from 2009-10 ? including a new top band (band M) for the
most polluting cars that emit more than 255g CO2 per km;
?? reducing the standard rate of VED, in 2009-10, for all new and existing cars
that emit 150g of CO2 per km or less, and increasing the standard rate of VED
on the most polluting cars to £425;
?? from 2010-11, extending the zero rate of VED, during the first year of
ownership, to all new cars that emit 130g CO2 per km or less ? the EU proposed
target for average new car emissions in 2012;
?? holding the first-year rate for all new cars that emit between 131 and 160g
CO2 per km equal to the standard rate in 2010-11;
?? introducing for the most polluting cars a first-year rate of £950 in 2010-11;
and
?? providing a £15 or £20 discount for alternatively fuelled cars in 2009-10, and
£10 in 2010-11; and aligning the alternative fuel and standard rates of VED
in 2011.


165 posts in this one - now locked and called Volume 1.

Edited by Dynamic Dave on 15/03/2008 at 22:01

Budget - VED changes - XantKing
So, here's what's proposed from 2009 onwards, taken from the full Budget report excerpt here (page 16 of the PDF):

www.hm-treasury.gov.uk/media/2/5/bud08_chaptera.pdf

(I did try putting a table in here, but the forum software appears not to like spaces, so you'll need to go to that link to see for yourself!)

Edited by XantKing on 12/03/2008 at 14:04

Budget - VED changes - KMO
Note one significant change - pre-2006 cars will no longer be let off from the higher rates of tax. So cars that are currently in band F only because of their age will be hit with the full band L/M tax.
Budget - VED changes - RichardW
Dieseldo nicely... :-))
Budget - VED changes - TheOilBurner
Note one significant change - pre-2006 cars will no longer be let off from the
higher rates of tax. So cars that are currently in band F only because of
their age will be hit with the full band L/M tax.

Yep, the BBC has thus far failed to notice that.

Also, that the current fairly normal band F gets a lot more punishment next year as it goes upto J/K, upto a 50% increase! Ouch for us with 2x204g/Km cars both registered before March 2006...

Not fair really to retrospectively re-band cars...when we bought them they were both considered normal cars, and are now being punished as medium-high polluters..

I feel they should have only applied the new bands for 2008 onwards new cars myself, in the same way the old band G only applied for 2006 cars onwards.

:(

Not happy with "Darling".

Edited by TheOilBurner on 12/03/2008 at 14:17

Budget - VED changes - motorprop
Crikey! , what will my 1986 US pickup with a 6.9 V8 diesel cost for VED then , and from when ? can't work it out . makes sense to tax it on the last month on normal rates for a full year .

Edited by Dynamic Dave on 13/03/2008 at 10:11

Budget - VED changes - JamesH
Note one significant change - pre-2006 cars will no longer be let off from the
higher rates of tax. So cars that are currently in band F only because of
their age will be hit with the full band L/M tax.


I read it as that too. Looks like my VED is going up from £210 to £415 next year.

There is only an effective showroom tax of £510 on the most polluting cars (255g/km+), not the £2,000 once mentioned. It would have been brave to apply the huge amount, but these high emitting cars typically cost £30k+ new so not a relatively high proportion. These are the sort of cars bought new by business leaders, who could also be party donors.
Budget - VED changes - daveyjp
The Aygo could be just £20, need to check emissions database. Only £5 increase for the Audi so I could be £10 up on the deal. Increase in wine and spirits duty will see him getting it back!

Edited by daveyjp on 12/03/2008 at 14:32

Budget - VED changes - daveyjp
Aygo down to £20 - it sneaks in to band B with 109g/km.
Budget - VED changes - The Gingerous One
Have I got this right ?

I have a '01/Y 1.8 Primera, which emits 183g/CO2 so I currently pay £165/year VED.
Now it will be increased to £170/year for 2008/09 (in fact from 13th March '08)
BUT come 2010 it will leap to £260 ???

Have I interpreted the table correctly ?!

(But then it is still a hell of a lot cheaper than going out and spending £4k on another car I suppose)

BTW I looked at p131 of the budget report , Table A.8a

Hold on, but if you have a high polluting car that emits (say) 230g/CO2, then from tomorrow you will have pay £400 but then in 2010 it's in band L so you would pay £410.


comments most welcome.

Budget - VED changes - KMO
That sounds right. 183 is at the top of the current £170 band, so you're getting a relatively large increase. People with 166 would be going from £170 to £175.

The people with 230g/km cars have already had their big increases - they're were £210 in 2006, £300 in 2007, and £400 this year.
Budget - VED changes - TheOilBurner
The people with 230g/km cars have already had their big increases - they're were £210
in 2006 £300 in 2007 and £400 this year.

However, that didn't apply to pre March 06 cars, until now...very sneaky..

How many people have gone and bought a 55 plate car to avoid band G only to have the goal posts moved...
Budget - VED changes - pd
Cue a wide selection of 2001-2006 petrol family cars being knocked down for £500....coming to an auction near you.
Budget - VED changes - TheOilBurner
Indeed, in fact a band M 2001 car could soon be written off by its VED bill alone!!!

I'm sure that can't make any enviromental sense! :0)
Budget - VED changes - Singer-G
Indeed in fact a band M 2001 car could soon be written off by its
VED bill alone!!!
I'm sure that can't make any enviromental sense! :0)

>>

On the other hand, if the new tax bands don't remove any cars from the road, what have they achieved?
Budget - VED changes - Singer-G
The irony is that if my old car (181 gm CO2/Km) decreases in value I will need to find more money than before to replace it with a newer, more economical, less poluting car. But still, I suppose one fewer new car on the road saves the CO2 that would have been emitted producing it.

Budget - VED changes - KMO
I can't complain - my VED keeps going down and down. First £65, then £30, then £15, and in 2009 it'll be £0. :)

But then I chose the car in the full expectation that there would be increasing pollution-based incentives/disincentives. Anyone buying an inefficient car should really have thought of that possibility.

It'll be back up to £20 by 2011 though :(
Budget - VED changes - TheOilBurner
Anyone buying an inefficient car should really have thought of that possibility.


What in 2001? Now yes - I agree. Re-banding older cars can't be right though, can it?
Budget - VED changes - Garethj
I can't complain - my VED keeps going down and down. First £65 then £30 then £15 and in 2009 it'll be £0. :)
But then I chose the car in the full expectation that there would be increasing pollution-based incentives/disincentives. Anyone buying an inefficient car should really have thought of that possibility.


Annual depreciation and fuel costs faaaaaar outweigh saving £60. On a new large car it far outweighs £400 too.
Budget - VED changes - PR {P}
To put the increase on new cars only I can understand, and see how it would work. I would probably not get a new car in that high emissions bracket. Job done, it has prevented me from buying one.
On the other hand, to someone who owns a larger engined car, you either (a) keep it and pay the extra, or (b) sell it, buy something else less polluting and probably take a larger hit on the value because of the increased tax. Either way, worse off and the car will still be on the road, as will another new one. Environmental benefit, errr, no
Budget - VED changes - Pica
I think this might result in a lot more untaxed cars on the roads too
Budget - VED changes - Garethj
I think this might result in a lot more untaxed cars on the roads too


You mean if someone's got a 6 year old car worth £800, they won't want to spend £400 taxing it??? And if they're not going to tax a car, there's not much point in MoT or insurance either. Some people could save thousands thanks to this budget - what a winner :-)
Budget - VED changes - Dave N
How does it affect my 1993 Landcruiser 4.2 diesel auto? Currently I pay £190 I think.
Budget - VED changes - TheOilBurner
How does it affect my 1993 Landcruiser 4.2 diesel auto? Currently I pay £190 I
think.


Pre 2001 cars will be taxed the same as present, with "indexed" increases related to some idea of inflation. That's until the next chancellor decides to move the goal posts for olders cars too...maybe...
Budget - VED changes - Singer-G
Pre 2001 cars will be taxed the same as present with "indexed" increases related to
some idea of inflation. That's until the next chancellor decides to move the goal posts
for olders cars too...maybe...


I see a situation where pre 2001 cars go on and on polluting while newer vehicles are scrapped as the tax rises. There must be a case for increasing tax on older cars based on engine size (say a new band for over 2litre) to prevent this from happening.
Budget - VED changes - madf
I am with KMO.
The trends have been clear for years.

As for fairness, since when have Governments done fairness..?

Anyone who expects consistency , fairness and truth from a Government desperately needing money is deluded. Imo of course:-)

Edited by madf on 12/03/2008 at 15:14

Budget - VED changes - TheOilBurner
Not expecting it, just disppointed all the same. After all, previous changes didn't target existing cars, now they do. That trend hasn't been clear for years, has it?

I sense some smugness from those in the lower tax bands... ;)
Budget - VED changes - thomp1983
anyone tell me where i can find the emissions for a 1989 bmw 535 sport? how are they going to class older cars such as this? also it runs on lpg so actually is quite clean but no doubt that's ignored

cheers
chris
Budget - VED changes - Garethj
anyone tell me where i can find the emissions for a 1989 bmw 535 sport?


Pre 2001 cars are taxed as before as far as I can see
Budget - VED changes - zookeeper
it makes a mockery of the last idea to show the "lifetime running cost" of vehicles , how can you predict the costs if the chancellor keeps " moving the goalposts "concerning VED i can see it now (and i'm no clarvoiyant) we will all be pootling about in 50 cc" put puts " in 20 years time !!
Budget - VED changes - TheOilBurner
it makes a mockery of the last idea to show the "lifetime running cost" of
vehicles how can you predict the costs if the chancellor keeps " moving the goalposts
"concerning VED i can see it now (and i'm no clarvoiyant) we will all be
pootling about in 50 cc" put puts " in 20 years time !!


My point entirely. It should also be noted that the government is aspiring to reduce CO2 levels by 80% within 12 years.

They seem intent on targetting the mere 28% of all emissions (those that come from transport) rather than the really big polluters. What about the rest of it, like offices that leave computers and monitors on 24x7? Why are drivers bearing the brunt of this?

If transport is the only way they know how to reduce emissions, then trust me, 50cc put puts will only be for the very rich!!
Budget - VED changes - Group B
>> anyone tell me where i can find the emissions for a 1989 bmw 535
sport?
Pre 2001 cars are taxed as before as far as I can see


Pre 2001 cars above 1549cc are going up £5 to £185.

LPG is getting hit with a big increase again. Duty is being increased from 16.49p/kg to 20.77p/kg, which is a 26% increase!

snipurl.com/21lg9 [www_hmrc_gov_uk]
Budget - VED changes - henry k
As for fairness since when have Governments done fairness..?
Anyone who expects consistency fairness and truth from a Government desperately needing money is deluded.

>>
I agree.

IMO the really unfair part is the extra tax hitting owners of small / medium sized autos.

( 98 2.0L auto Mondeo owner)
Budget - VED changes - b308
SNIPQUOTE for the person who ignored the message that popped up on his screen asking him to summarise the reply to which he is responding to
IMO the really unfair part is the extra tax hitting owners of small / medium
sized autos.
( 98 2.0L auto Mondeo owner)



As an owner of a '98 mondeo it won't affect you, though, will it?!

I can see more and more pre 2001 cars outstaying their welcome, especially in the larger engine versions - most older cars, regardless of their engine size pollute more than newer ones so this in effect encourages the use of them.....

Edited by Dynamic Dave on 12/03/2008 at 18:54

Budget - VED changes - TheOilBurner
Yes, you've got that right.

You have to read the report carefully, but the new bands *will* apply to all cars registered from 1st March 2001.

So, a 256 g/km car registered in 2002 that was band F (£210 now) will rise to band M (£440 in 2009).

Fair? I don't think so, how would someone buying a car years ago have known that the VED would be shoved up 100% up to 7 years later?!

It's a shame really, because in principle I agree with the new banding system, just not with applying it to existing cars.

The first year thing is a bit of a joke because it doesn't add much extra overall cost on, so is not going to encourage anyone to buy with economy in mind - clearly just a way to raise more tax!
Budget - VED changes - smilingvulture
i hav a golf G.T.I--2004 new

what will i have to pay?
Budget - VED changes - zookeeper
this may help the " what is my co2 level?" brigade

www.smmtco2.co.uk/co2search2.asp
Budget - VED changes - madf
BTW, there is a change in tax relief on biofuels. As far as I can gather - and have not read details - all tax reliefs are being reversed..

"The Treasury is raising £550m in 2010-11 ? which is not trivial ? by removing the biofuels duty differential. "



As I say, anyone who believes and trusts anything Governments do or say is going to be sadly disapppointed.

Edited by madf on 12/03/2008 at 16:11

Budget - VED changes - zm
As I say anyone who believes and trusts anything Governments do or say is going
to be sadly disapppointed.


Or simply just very gullable and/or stupid.
Budget - VED changes - TheOilBurner
"Plans to increase first-year road tax by £950 for the most polluting vehicles - and a general reform of Vehicle Excise Duty aimed at encouraging the production of greener cars - are also expected to bring in an extra £730m annually by 2010. "

Quote from the BBC.

So, if we all took the hint and bought Band A, Zero VED cars, the chancellor would be short by at least £730 *million* (just the extra earnings with the new bands!) a year!!

Guess what all you smug folks with the low emissions cars, if the rest of us join you, then the government would be forced to put your VED up to compensate for the hole in the budget... It won't seem so funny when a Toyota Aygo is in Band Z and costs £2000 per year in tax and the only Band A car is a Motobility scooter!!! ;)

Tongue in cheek, of course. But it is clear the government needs us to carry on buying "gas guzzlers" in order to avoid going bust! The environment has little or nothing to do with it. So, in effect VED has become an extra tax on people who like to tow caravans, or large boats. People with 2 or more large dogs, or 4 kids, etc etc. That's the reality, it's a lifestyle tax as well as a consumption tax.

Edited by TheOilBurner on 12/03/2008 at 16:08

Budget - VED changes - madf
Oh Well our Yaris diesel will have VED of £20 next year and then nil.. so I should not be unkind...
Budget - VED changes - TheOilBurner
Are you sure you're reading that right madf?

As I read it, no-ones car will drop to nil, only some new cars will be nil in their year of registration:

Band B:

2008-09
£35

2009-10
£20

2010-11
£20 (but free for 1 year when purchased new only!!!)

i.e. if you buy a new Yaris diesel in _2010_ it will be free in 2010 and then £20 afterwards, but your existing Yaris will remain £20 throughout.

Edited by TheOilBurner on 12/03/2008 at 16:28

Budget - VED changes - KMO
You can get to zero by being in band A, which was already at 0, or by being in band B with the £20 alternative fuel discount - that drops to 0 in 2009, but then it goes back up as the discount is phased out.
Budget - VED changes - TheOilBurner
That's right, only people who already pay nothing will continue to pay nothing.

How many actually in Band B are on the alternative fuel discount...
Budget - VED changes - KMO
No, Band B with alternative fuel discount is £15 in 2008/09. This new budget drops it to £0 in 2009/10.

The most notable car in that class is the Toyota Prius.
Budget - VED changes - TheOilBurner
Who defines the Prius as alternative fuel? Surely it's runs on Petrol!!

I thought alternative fuel only applied to LPG, Bio-fuels etc.

Please show me a link to prove me wrong, because I can't see one.

In any case, the discount is to be decreased to £10 in 2010 and removed altogether in 2011.
Budget - VED changes - madf
A complete list of VED by category by year is in table.A.8a page 122
www.hm-treasury.gov.uk/media/2/5/bud08_chaptera.pdf

My Yaris diesel will have £20 VED by 2010 if I read it correctly.
Budget - VED changes - TheOilBurner
My Yaris diesel will have £20 VED by 2010 if I read it correctly.

Madf, doesn't your Yaris have emissions of 119 g/km? In which case you're going to find it "promoted" to band C and a charge of £35 in 2010, i.e. the same as you're paying now.

In fact the number of cars in band B with it changed to 101-110 g/km (instead of 120) must be countable on one hand now!
Budget - VED changes - KMO
A quick check of the VCA database gives me:

Band A
--------
Seat Ibiza 1.4 TDI Ecomotion (Nov 06-) 99g/km
Volkswagen Polo 1.4 TDI Bluemotion (Nov 06-) without A/C 99g/km
Any battery-electric cars will also come in here

New Band B
--------------
MINI Cooper D 104g/km
Toyota Prius 104g/km
Volkswagen Polo 1.4 TDI Bluemotion (Nov 06) with A/C 104g/km
Peugeot 107 1.0 108g/km
Citroen C1 1.0 109g/km
Toyota Aygo 1.0 109g/km
Honda Civic Hybrid 109g/km
MINI Clubmnan D 109g/km
Skoda New Fabia Estate 1.4 TDI Green-Line 109g/km
Fiat 500 1.3 110g/km


Budget - VED changes - TheOilBurner
I hope the car manufactuers can do something to lower emissions, because I don't see too many 5 door family estates in that list that would be big enough for my needs (and many others I guess).

The Fabia estate is a start I suppose, but I'd love to see a proper Mondeo sized car in Band B, especially one with an autobox. Would it be too much to hope for some performance too...
Budget - VED changes - KMO
And, for what it's worth, here's a count of entries in their database in each new band. I'm not sure how much coverage their downloadable database has of older models, and how much they split models up into entries is rather arbitrary, but it may be interesting:

A: 2 models
B: 13
C: 86
D: 112
E: 178
F: 208
G: 400
H: 225
I: 335
J: 662
K: 500
L: 384
M: 423
Budget - VED changes - madf
OOPS!
£30...
Budget - VED changes - KMO
Going back up a few points - in 2001 the VED shifted to being pollution-based, so anyone buying from that point should have realised that the boundaries and amounts could shift. And they were only going to shift in one direction. Those before 2001 are still exempted.

And yes, no doubt they will shift further, and one day all those Prius drivers will be paying a lot more. From a low of £0 in 2009, the only way is up as the targets get tighter and tighter. But the Prius owners when they're in band Q will still be a lot smugger than those higher up the scale in band ZZZOmegaBlack.

As for a lifestyle tax, well, yes, if your lifestyle involves consumption. And certainly having 4 kids is one of the least green things you can do, I would imagine.
Budget - VED changes - TheOilBurner
Going back up a few points - in 2001 the VED shifted to being pollution-based
so anyone buying from that point should have realised that the boundaries and amounts could
shift.

Why? Easy to say with hindsight. As recently as 2006 new bands only applied to brand new cars and not retrospectively to existing cars.
But the Prius owners when
they're in band Q will still be a lot smugger than those higher up the
scale in band ZZZOmegaBlack.


LOL!! True enough.
As for a lifestyle tax well yes if your lifestyle involves consumption. And certainly having
4 kids is one of the least green things you can do I would imagine.

True, but on a sliding scale of zero consumption (not possible, arguably) to somewhere around government ministers, we all have to fit somewhere. Even having no kids ensures you're frying the planet in one way or another. Just maybe not as fast. :)
Budget - VED changes - smilingvulture
my message to GOV is snipped due to tripping the swearfilter

Edited by Dynamic Dave on 12/03/2008 at 18:56

Budget - VED changes - moonshine {P}

Refunds - found this on page 73. I have to admit I'm too lazy to cash in and re-tax a car. the government seem to have taken it seriously though.



Budget 2008 announces that vehicle excise duty (VED) refunds will be restricted to
the registered keeper of a vehicle and applicable only when a vehicle has: been stolen,
destroyed, sold or otherwise disposed of; become eligible for a nil licence; been declared as
statutorily off-the-road; or been permanently exported. This will help ensure that motorists
cannot avoid paying a pre-announced rate of VED.

Budget - VED changes - Rover25
What's the chances of the Gov't introducing monthly direct debit for VED??
Budget - VED changes - midlifecrisis
Well..according to that, my 2.2 litre Peugeot will face a near 50% rise in VED next year to £300. A national scandal. Watch the expenses of these morally corrupt 'individuals' soar as they expect the taxpayer to fund these increases. Politicians, wouldn't spit on them if they were on fire.
Budget - VED changes - thomp1983
slightly ot but what is happening with the tax break on lpg?

cheers
chris
Budget - VED changes - zm
Politicians wouldn't spit on them
if they were on fire.


Neither would I, instead I would gladly buy sveral gallons of super unleaded and pour it on to them!!
Budget - VED changes - ablandy
great news this - not. I am selling my accord tourer 2.4 in a couple of months when my new mondeo arrives. Its 230 g/km

First selling price takes a hit coz of Lovely Ken and his con charge hike, now the selling price falls through the floor coz on Mr Darlings bright idea. £400 per year! Crazy.

Methinks i might have difficulty selling it now!

Budget - VED changes - Singer-G
This doesn't stop you declaring a vehicle as SORN next February, if you can afford to do without it for a month, then taxing it again in March. Alternatively, depending on when your tax expires, it is well worth considering taxing for 6 months this time round so that you then get to renew again before the new rates come in.
Budget - VED changes - zm
My big concern about all this is when will they decide to start taxing cars registered before the March 1st 2001 cut-off in the same way?

Please don't anyone say that they won't, because I for one would not put anything past them.
Budget - VED changes - TheOilBurner
You can hope that they won't bother. After all, by 2011 when the new bands are fully settled in, a pre 2001 car will be at least 10 years old. Not enough of them around to make it worth while I expect.

Never say never though, given what we've seen today...

Edited by TheOilBurner on 12/03/2008 at 17:52

Budget - VED changes - Mazda-Man
True - this excuse for a government has moved more goalposts than the groundsmen on Hackney Marshes have done in the last decade.
Budget - VED changes - Pugugly
A blunt instrument no less. People who can afford bigger motors are those who can will raise fees etc to cover the cost. It's what I would/will do (depending on my imminent retreat to a more Bohemian lifestyle) so their customers will end up paying

Again HMG knocks rural life. Lot of people I know buy and use 4x4 for the purpose they were designed for working in rural areas.

Edited by Pugugly on 12/03/2008 at 18:52

Budget - VED changes - jbif
.. those who can will raise fees etc to cover the cost.


Very true indeed. The costs usually get passed down the chain. As I found recently with environmental disposal charges - the local Independent charged me £20 for "disposal" of replaced parts which a scrappy would gladly take in free or may even pay for it by weight to take it off you.

Budget - VED changes - Pugugly
SWMBO's absorbed the data - she'll up her fees to cover any increases that our finances may suffer, she's figured it out to a percentage point.
Budget - VED changes - jbif
she'll up her fees to cover any increases that our finances may suffer


Pity the poor families in the UK (such as the civil servants, nurses, police, etc. ) who rely on "generous" 2% pay awards from dictated by the HM Treasury. I guess they will just have to put in more "overtime". The overtime bill will get paid from the Treasury's bulging coffers that result of the higher VED rates.

Who is at the end of the "food chain"? Pensioners? PAYE employees? Who takes the hit? Any economists here know the answer?

Budget - VED changes - zm
SWMBO's absorbed the data - she'll up her fees to cover any increases that our
finances may suffer she's figured it out to a percentage point.


I don't blame her, I'm sure she will not be alone in doing so, but this is clearly going to aid inflation; not that this seems to occur to our stupid, ignorant, spitefull, arrogant out of touch politicians.
Budget - VED changes - jbif
Darling said "Firstly, from April 2009, I am proposing a major reform to Vehicle Excise Duty to encourage manufacturers to produce cleaner cars .."

Obviously he thinks the VED tax regime in the UK will cause International manufacturers to change their products. Brittania rules the World, OK.

Edited by jbif on 12/03/2008 at 18:52

Budget - VED changes - zookeeper
prime minister to exchequer " how was it for you darling?" .....you fill in the rest!!
Budget - VED changes - dxp55
I can't see the new VED being a problem for anyone with four kids as mentioned above - family allowance has gone up to £20 per kid -thats £80 a week or £4160 a year - so now not only do I pay more for my VED I also pay for other peoples sexual habits - I have always said if you can't afford them don't have sex
Budget - VED changes - TheOilBurner
Please get your facts right, that's £20 for the first child, it drops sharply after that. And with childcare going well past the £700 a month mark, you need all the help you can get...

Motoring related?
Budget - VED changes - Pugugly
Well yes, in the context in fairness. If cars and their use is being taxed and it costs motorists, its only fair to point out any offsets in any other areas.
Budget - VED changes - PhilW
"And with childcare going well past the £700 a month mark, you need all the help you can get..."
"If cars and their use is being taxed and it costs motorists, its only fair to point out any offsets in any other areas. "

And of course, one might also add that if you are a nice, much valued Polish gentleman who has come over here to help us with our plumbing problems, you can claim child allowance for the 4 children you left at home in Poland.
Must be quite nice given that "In Poland the average monthly salary is just 460 euros (£316; $579), about a third of the EU average."
£20 a week for first child is quite a nice bonus on top of that.
Your extra VED and all that tax on fuel is helping to pay for that.



Budget - VED changes - Tron
www.vcacarfueldata.org.uk/search/vedSearch.asp

Budget - VED changes - madf
We should all stop complaining about VED: After all statistically 40% of the readers do not vote and 40% of the remaining who did voted for the current Government.

VED is a way for raising taxes to be spent on green issues like:
err.
err..
hmmm.

I'll come back tomorrow when I think of them.
Budget - VED changes - Mazda-Man
Well the I think the 60% of those who didn't vote for New/Old/NearlyNew/ReallyQuiteShabby Labour are entitled to moan large!
Budget - VED changes - jbif

NuLabour got just 35.3% of the votes of the 61.3% turnout. In other words, just over 20% of the eligible voting population voted for NuLabour.

news.bbc.co.uk/1/hi/uk_politics/vote_2005/constitu...m

Budget - VED changes - rtj70
I found it amusing when the company car tax became emission based... I follow the car news so know the changes were coming.

Goit a Golf GTI 1.8T which would for the period of having it put it in the lower end bracket. It got nicked and got a Passat 1.8T Sport which was a little worse but not bad. In fact not driving huge miles I'd be better off.

Then the change came and colleagues whinged that they were worse off and this was unfair. But I'd got two cars before the change with this in mind.

Then car before this, a Mondeo TDCi, I get an early Euro IV diesel so not paying a diesel benefit in kind surcharge for 4 years ;-) Colleagues again oblivious.

We're going to pay tax but we can reduce it sometimes ;-) Anyone know how the bands on emissions on company cars changing? Had a quick look at budget web page but not found the details yet.
Budget - VED changes - dxp55
Phil

Thank you - it's nice to see there is someone else who looks at "whole picture" - I also can't see relevance of the £700 month
Budget - VED changes - KMO
As previously announced, company car tax bands are tightening up by 5g/km in 2008/09, so the 15% threshold is at 135g/km. There's no longer any special handling for hybrids or bi-fuel cars, but anything 120g/km or less will be 10%. It'll stay the same in 09/10.

Today they announced that they're tightening by another 5g/km in 10/11 - the threshold lowers to 130g/km.

There's also some shenanigans about fuel allowances and capital allowances.
Budget - VED changes - KMO
Actually, that's slightly wrong - there are still discounts for hybrids and bi-fuel cars, unless they're <=120g/km, in which case they'll the same flat 10% as any conventional <=120g/km car.
Budget - VED changes - Devonboy78
It has been touched on already, but the way I see these changes is that the Gov are going to hit larger than average, lower-income families (we are 2 + 3 children household) as they have a definite NEED for a larger car. Single, high-income matey-boy in his RR Sport is not going to give a damn on the £950 initial charge (less than 2% of the overall purchase cost) and then the £455-odd a year on VED. As it has already been pointed out any future increases in Gov benefits to families have already all but been absorbed with increases in general childcare/costs, etc.

Pop quiz - what is the lowest band MPV that will take 3 car seats across the rear bench under the new regime? I don't know the answer by the way!

DB





Budget - VED changes - Pugugly
On the nose. Add rurality to the recipe as well.
Budget - VED changes - jbif
as they have a definite NEED for a larger car


I think you will find that the Govt and its advisors don't think anyone NEEDs a large car. They work on the basis of theories such as Abraham Maslow's hierarchy of human needs.
1. Biological and Physiological needs - air, food, drink, shelter, warmth, etc.
2. Safety needs - protection from elements, security, order, law, etc.

These are the top two "needs" that the Govt understand and their Budgets aim to satisfy.
Everything else is luxury in their minds.
Budget - VED changes - MichaelR
The cars being taxed are already out there - these tax rises won't curb their use unless they are scrapped and replaced with new cars. How is applying this tax retrospectively a good thing?

Once you've paid for a years tax at £stupid you are not exactly going to restrain your use of the car, are you? On the contrary it might even have the opposite effect. I often walk and use public transport - once I've paid £430 I'm getting MAXIMUM use out of the car.

I honestly cannot understand the reasoning behind the decision to apply this to existing cars. They didnt do it last time so why this time? What is it intended to acheive?

Lets look at me as an example. I drive a 2001 530i Sport which emits 228g/km of CO2. I drive this car 5000 miles a year so actually cause less CO2 emissions than your average family in a diesel Focus. But, irrespective, I have to pay £430 road tax. Now....

...What is this £430 supposed to do? Lets look at a few scenarios:

a) Sell my car and buy an efficient, low CO2 car. Ok. Lets assume I do this. I sell my car and... somebody buys it. And continues to use it. So we've actually not saved the planet very much at all.

b) I scrap my car and buy an efficient, low CO2 car. Polluting car off the road, economical vehicle replaces it. Great - in theory. In practice nobody is going to scrap a car worth several thousand pounds and the CO2 my car will emit will not exceed that used to create the new car I might then build

c) I keep the car and simply pay more tax.

I wonder...
Budget - VED changes - SuperBuyer
Well I've just worked out that if I tax the Shogun for 6 months that takes me till the end of November, and then 1 year from November means I've got about 18 months to get rid or write it off financially (£6K over nearly 2 years, its about new car depreciation levels I s'pose). Or otherwise emigrate somewhere I can take it. Or register it abroad. Hmm, theres an idea!

Anyone want to start a rent-an-address in Poland, or similar Eastern Europe country for us all to use to register our cars? Don't get me wrong, tax is much needed, but there comes a level when paying £10K a year (actually its probably more, but I can't be bothered working it out) is just not nice.

Anyone want a 2001 Y Shogun LWB ? Yours for £6.5K.
Budget - VED changes - David K

The Government is a 'business'...it needs more cash to cover its overheads (Iraq etc). It knows that car buying patterns will change little, so it can be quite punitive with its car tax increases and get away with it.

Just imagine, for one moment, we bought the 'green' issue. En masse we all bought low emmission vehicles, paying no VED and using less petrol. The treasury would be in crisis. Within weeeks we would witness the introduction of toll roads and 'tyre' tax!!

I always find it amusing that to justify increases in petrol tax, the government spokesmen will justify the extra revenue as neccessary to fund 'schools and hospitals' never 'tanks and bombs'. If our leaders are really concerned about global vehicle pollution they'd stop sending troops, Land Rovers, armoured troop carriers, Tanks, Fighter/bomber aircraft, helicopters, ships and submarines half way round the world to blow things up!

There...I feel better for that...!

DK
Budget - VED changes - midlifecrisis
And just a reminder:

The government reaffirms its commitment to exploring national road pricing.

Budget 2008 announces an invitation to tender to the private sector to run a number of projects based on charging by time of day, distance traveled and route chosen.

To say I'm feeling a little angry is a slight understatement.
Budget - VED changes - Mazda-Man
I think you will find that the Govt and its advisors don't think anyone NEEDs
a large car.


That'll be why our glorious leaders all drive around in Fiat Unos.
Budget - VED changes - b308
2 + 3 children household) as they have a definite NEED for a larger car.


Three years ago we went on a driving holiday round europe with 2 adults and three teenagers in a Fabia estate, it was comfortable and took all our luggage... A Meriva is nearly as roomy....

How much of the time does the car actually carry all five people? Not that much, I suspect...

No, I'm sorry, we don't need a large car for a 2+3 or less, its only advertising that has persuaded people otherwise...

Cars have been getting larger and larger over the past few decades for no real reason (except safety, I suppose, but even thats debateable), its about time they started to get smaller as our roads, especially in the country don't suit large cars.....
Budget - VED changes - Garethj
How much of the time does the car actually carry all five people? Not that much I >> suspect...


Are you suggesting that having 2 cars is better?

No I'm sorry we don't need a large car for a 2+3 or less its
only advertising that has persuaded people otherwise...


No, it's the size of child seats (needed until they're 12?) that's persuaded people. 3 child seats in the back of most cars just will not fit, no matter how many memories we have of 6 of us in the back of a Hillman Hunter in 1974.
Budget - VED changes - Dipstick
As I drive a monster in terms of co2 emissions, my first thought yesterday was it was time to get shot. Overnight I thought of a few possibilities that would be smaller but still something I would want to drive.

Having trawled through the tax tables this morning, it's clear that idea is a no goer, because even the the smallest of those possibilities are still taxed within a whisker of what I'll be paying for the beast.

To actually save significant money on the tax I really would have to go from one extreme to the other, not just downsize a bit.

So me losing the monster won't happen on VED alone I fear.
Budget - VED changes - stunorthants26
In May Im putting my prices up for my valeting business - between £1 and £2 per valet. Doesnt sound much but it covers all rises in VED and fuel price increases for the next 3 years. Job done. Someone else ( who have far more money than I, is now paying for me ) :-).
Budget - VED changes - MichaelR
Three years ago we went on a driving holiday round europe with 2 adults and
three teenagers in a Fabia estate it was comfortable


No it wasnt, you just have hopelessly low standards.
Budget - VED changes - UncleR
In principle I agree with these changes. In fact, when I saw the headlines about taxing 'gas guzzling' vehicles more heavily I assumed they meant those monstrous 4x4s, sub 10mpg monsters etc. and didn't pay much attention.

I decide to have a look and realise that my 3 Series 2l estate which I didn't feel was anywhere near being considered a 'gas guzzler' will cost me an extra £90 a year to tax (from £170 to £260). Fair?

Looks like they have seen an opportunity to raise taxes and made a token gesture to those who want to drive a Prius.
Budget - VED changes - Shaz {p}
Although sometimes you can be a little (how do we say it...) - direct I must say that was really funny.

Edited by Shaz {p} on 13/03/2008 at 13:13

Budget - VED changes - Shaz {p}
I was commenting on MichaelR's comment. Damn it - my comment got moved down..

Edited by Shaz {p} on 13/03/2008 at 21:16

Budget - VED changes - b308
No it wasnt you just have hopelessly "low" standards.


Just realistic ones, actually, and I don't feel the need to follow the herd in buying bigger than I actually need...
Budget - VED changes - Westpig
Three years ago we went on a driving holiday round europe with 2 adults and three teenagers in a Fabia estate it was comfortable
No it wasnt you just have hopelessly low standards.

Michael....you forgot to say he was 'alright Jack' in the front. Wouldn't have wanted to be one of the rear seat passengers.
Budget - VED changes - deepwith
Wonder what the three teenagers would say? ;~)
Budget - VED changes - b308
Wonder what the three teenagers would say? ;~)


:-) They slept most of the way actually! My point was just that an awful lot of people choose a car one or two sizes above what they actually need for the extra "luxury" it brings, rather than actual need (I see lots of OAPs driving Mondeo sized cars, for instance)... but I accept there's no denying that some do need a larger car... or smaller family!

With all these increases though, I do wonder if we will see many people owning a small car and then on the odd occassions they need a larger one (say for holidays) they will rent - bearing in mind fuel costs as well as tax it could soon work out cheaper?
Budget - VED changes - Westpig
b308,

you could have made do with a Honda C90 like they do in India (albeit illegal in Europe). I should imagine many countries in the world would think the Fabia estate to be absolute luxury...and think you could have done it physically in a Seicento or similar

the thing is who in this country or any other industrialised Western country would want to? I can honestly say hand on heart that i'd rather stay at home and go to work than have a holiday that involved a long journey in something unpleasant or in unpleasant circumstances......and being one of three people in the back of a Fabia would fit the second part of that criteria with no problems at all.
Budget - VED changes - shawad
My big concern about all this is when will they decide to start taxing cars
registered before the March 1st 2001 cut-off in the same way?
Please don't anyone say that they won't because I for one would not put anything
past them.


They can't - they never measured g/km output of the cars pre-2001. The current figures are measured on one car that the manufacture supplies to be tested. The only way they could do it now would be to include an annual CO2 output test of every car and charge people based on that figure.

It would catch out the yoof of today and their 'modified' cars though - take a standard 1.6 Focus, put bigger wheels on it, a K&N filter, cat-back exhaust, re-map and that's bound to put a hell of a lot of cars on the road up a few bands.

I'm going up 60 quid next year (depending on when the 2009/10 figures start, my VED is due at the end of Jan 09), but at least the lass at my work who drives an 04 plate 4.5L Porsche Cayenne Turbo 1.5 miles to work each day is no longer paying the same VED as me.
Budget - VED changes - Garethj
Interesting post on another website about whether CO2 is really the best way of measuring emissions. I remember my powertrain lecturer saying something similar when I was in Uni in the early 90s
-------------------------------------------------

Low emission cars....or low CO2 cars? There's a very big difference. Allow me to demonstrate. I drive a car that produces 265 gCO2/km (Mazda RX8). "Disgraceful" I hear you cry. "Think of all the poor polar bears" you cry into your muesli. "Penguins are melting because of your selfishness" you weep as you peel the next round of courgettes. Which would be correct if CO2 was a pollutant which, of course, it isn't. The whole CO2 debate is spurious at best and certainly far from finished but let's just ignore that and assume that the lettuce wearers are correct for a minute (they're not, it's natural climate variation but let's pretend).

The atmosphere contains 0.039% CO2 of which 3% is man made and of which 2% comes from the UK. Of that 2%, only 16% comes from transport (not the 23% quoted by Darling, he should actually do some reading on the subject). If every car in the UK was immediately crushed and not replaced, forcing everyone to walk, the difference to man-made CO2 would be? 0.32%. Of total atmospheric CO2? 0.0096%. Of the total atmosphere? 0.0000037%. This is not an environmental tax. It's just a tax, pure and simple. It will have ZERO effect on man made CO2, never mind overall atmospheric CO2. Reducing CO2 emissions and making people drive less and buy lousier cars will make absolutely NO difference.

If it was a tax on pollution, where is the mention of carbon monoxide, unburnt hydrocarbons or oxides of nitrogen? These are true pollutants linked with the likes of lung cancer, heart disease, bronchitis, pneumonia, asthma, emphysema etc. They are the principal cause of local air pollution in large cities, yet no-one seems to be bothered about them when focussing on the airy fairy nonsense that surrounds a naturally occuring harmless gas like CO2.

And when you start to look at the readily available data at vcacarfueldata.org.uk/ , you'll see that the worst polluters aren't the cars that necessarily produce the most CO2. If a car produces more CO2 (and water vapour) it's actually burning fuel far more efficiently and producing less carbon monoxide and hydrocarbons. Which is why diesels seem to go unpunished. Despite dreadful levels of both, they produce little CO2 thanks to inefficient combustion and get let off paying higher taxes. My car, and feel free to check, has lower levels of these three pollution groups than a Ford Ka and beats the new Fiat 500 1.2 in two of the categories thanks to the far more efficient burning of rotary engines. But I'll be paying more than double the tax of those two.

Compare the RX8 to the Golf GTi, which apparently will be taxed at just under half my level, and you'll see that the Golf produces 50% more true pollutants. Go look up the Polo Bluemotion you mention. It produces similar carbon monoxide to an RX8 and twice us much nitrogen oxides. They don't list hydrocarbons for diesels...strange that, I suspect because their results are shockingly high.

So, now tell me about pollution. And I don't mean the uneducated headless chicken, mass hysteria of CO2. I mean actual pollution. And explain to me why I'm paying double the level of tax that cars that pollute more are.
--------------------------------------------------

Interesting post I thought?
Budget - VED changes - RichardW
"Interesting post I thought?"

Maybe, but it does contain a lot of tripe....

"not the 23% quoted by Darling, he should actually do some reading on the subject). "

I think the OP should take his own advice!

"If a car produces more CO2 (and water vapour) it's actually burning fuel far more efficiently and producing less carbon monoxide and hydrocarbons. "

Eh? The chemistry's gone awry somewhere.

"Which is why diesels seem to go unpunished. Despite dreadful levels of both"

Er, no - diesels run with excess air and produce negligible CO, and unburnt HCs (provided they're not knackered and burning oil - which they rarely are, since the diesel lubricates the cylinders, unlike petrol.

" they produce little CO2 thanks to inefficient combustion and get let off paying higher taxes. "

Er, no. They produce less CO2 because they are MORE efficient, and turn more of the fuel into motive power rather than wasted heat, so use less of it.

"thanks to the far more efficient burning of rotary engines"

That's the first time I've hear that description applied to Wankel engines!

"[Polo bluemotion] It produces similar carbon monoxide to an RX8 and twice us much nitrogen oxides. They don't list hydrocarbons for diesels...strange that, I suspect because their results are shockingly high."

CO in diesels is unmeasurable (hence it isn't at MOT time). HCs are also very low.

"And explain to me why I'm paying double the level of tax that cars that pollute more are."

Because your logic and chemistry is flawed, perhaps???



Budget - VED changes - Saltrampen
My gripe is that the CO2 figures do not always reflect what happens to different size engined cars.
My old 02 Civic 1.6 would do 37.5 mpg on fast dual carriageways as was pullling almost 4000rpm. My 1.8 Mondeo does 37.5- 38 mpg on same route as is only pulling 3200rpm.
Yet I will be paying c.£100 more (Civic vs Mondeo) in tax in future. So If the chancellor wants me to buy smaller engined cars and run them at 4000rpm + all the time, probably emitting more CO2 on my particular route then that is what I will do next time I buy a car. I have heard stories of some modern 1.3 and 1.1 size engines only getting sub 35mpg on motorways and dual carriageways.
The Government answer of course will be to reduce the speed limit I expect!
Budget - VED changes - DP
Well, the Volvo's going up to £300pa. It's theft. Nothing more. This is a 4 door family saloon with a 2.0 petrol engine. Hardly a symbol of opulence, waste and excess.

MichaelR hit the nail on the head with his earlier post. What exactly are they expecting people to do here? Keep it and pay the tax (yes, that's exactly what they want us to do, because when you peel away all the nonsense, it's about boosting treasury coffers to compensate for years of incompetence), scrap it early (a total environmental nonsense!), or sell it on and let someone else drive it? (same result as if I keep it)

And as others have said, if they're stealing £300 pa off me, I'm going to drive the damn thing as much as possible.

I will vote for any party, however otherwise nasty, evil or downright mental which commits to drop this ridiculous environmental charade after the next election. I am totally pig sick to the back teeth of it, and for me it has become the biggest issue in politics today. Most of us can see it for what it is, so why do we allow it to happen?

Even the hand-wringing environmentalists must be able to see that this approach, apart from turning a significant majority of moderate thinking people into rabid anti-environmentalists, actually won't do squat to reduce emissions.

Sorry, this is a bit of a rant, but this whole thing makes me absolutely sick.

Cheers
DP

Budget - VED changes - jbif
>>Keep it and pay the tax (yes, that's exactly what they want us to do, because when you peel away all the nonsense, it's about boosting treasury coffers
>>Most of us can see it for what it is, so why do we allow it to happen?
.. actually won't do squat to reduce emissions


Yes, agree with you completely. That is what it is all about and the smart people will just pay the tax on their current cars as it is the much cheaper option, while the not-so-smart ones will rush out to spend £ thousands because either they think they will be doing their bit to save the planet or to more likely because they can see that it will save them a few pennies in return for spending thousands.

Budget - VED changes - jbif
Yet I will be paying c.£100 more (Civic vs Mondeo) in tax in future. So If the chancellor wants me to buy smaller


I am amazed by other comments in a similar vein. Are people really going to change down their cars to smaller engine ones just to save £2 a week on VED?
The news item on BBC BreakfastTV today showed a SAAB at a dealer in Slough which has been marked down from £30000 to £10500 after just 18 months on the road with under 20k miles. The dealer predicted that 2nd hand prices for similar big-engined cars will fall even faster than that in a few months. If I lived near there, I would be rushing to bag that kind of bargain to save hundred on the purchase price and happily pay the extra pennies per mile on the VED.
Proves that people tend to be penny wise, pound foolish.

The Government answer of course will be to reduce the speed limit I expect!


That is bound to happen - either in the cause of reducing emissions, or by fitting out the speed control measures on all Motorways as on the M25 Heathrow in the cause of reducing congestion.

Edited by jbif on 13/03/2008 at 10:44

Budget - VED changes - pd
That's pretty typical for a large Saab so you don't need to live near there. Even if you don't, I'm sure they'll deliver it to you. Are you going to buy it?
Budget - VED changes - jbif
Yes, sure, definitely, if I can find one like it near me. It was TradeSales who do not do "enhanced customer services". Anyway, I like to buy locally to do my bit to save the planet.

As it is, I was just about to put a deposit on a 182 g CO2 car that was coming to the dealer at the end of this month. I am now looking again at what price reductions can be found in the next two weeks.

Or if I wait, in a few months, the depreciation on RangeRovers and BMW-X5 and Porsche-Cayennes due to the double whammy of Red Ken's CC and the VED will make those affordable too.

Edited by jbif on 13/03/2008 at 11:00

Budget - VED changes - UncleR
x

Edited by UncleR on 13/03/2008 at 11:25

Budget - VED changes - legacylad
My car was registered in 1998, with 192 g/km emissions. Because it is pre 2001 and will 'only' suffer from the normal VED increases does this mean it may increase, or at least hold its value better, and that post 2001 vehicles with large emissions will now drop faster in value?
In my simple world it appears that if I want to avoid paying large(er) VED sums, and want a decent 2.0 (or larger) petrol engined motor, I will have to continue to run cars registered in 2001 or earlier.
Budget - VED changes - Garethj
In my simple world it appears that if I want to avoid paying large(er) VED
sums and want a decent 2.0 (or larger) petrol engined motor I will have to
continue to run cars registered in 2001 or earlier.


I have come to the same conclusion. SWMBO has a 1999 Galant V6 which looks just fine since yesterday afternoon.

There's a similar post about the value of a 2001 2.5 Mondeo today. Just insane
Budget - VED changes - Jonathan {p}
I've just checked what this means for our cars

Mine 1998 emits 206g will cost 200
wifes 2002 which emits 209g will cost 300

previously both cost 190
absolute scandal.

Neither are gas guzzlers and we only do about 8-12k a year in each.
Budget - VED changes - UncleR
If I box clever then I'll renew for 6 months in Sept then for a full year in March - so I won't have to pay these rip off rates until 2010. New rates come in April right?
Budget - VED changes - moonshine {P}

I still think the best answer is to scrap VED and put the tax on fuel. Surely this is a fair and effective solution?
Budget - VED changes - Armitage Shanks {p}
Without taking this thread down the road of a political or global warming rant, which would rightly annoy the mods, I need to ask what happens to the money raised by these 'Green' taxes? People who own vehicles which emit high amounts of CO2 are charged for the privilege; however, in what way is the money raised going to be spent to reduce or mitigate these allegedly damaging emissions? Will forests of trees be planted or what? As an aside, there is a clear difficulty in balancing priorities and taxation when I can take flights, as I did yesterday, to Frankfurt and back for £10 and pay £14.20 to park at the airport for the 14 hours I am away!
Budget - VED changes - Jonathan {p}
My wife's is up for renewal in a couple of weeks if we renew for 6 months and then a year, will we still have to pay the current 200 rate, or a pro rata of the new 300 rate?

Alternative is to pretend disk is lost and reapply a month earlier (end of feb not march/april) losing £17 but saving £100
Budget - VED changes - Marc
Do these VED changes also apply to Wales and Scotland?
Budget - VED changes - madf
Please stop whingeing.
Darling needs cash.
Motorists are sitting targets.
CO2 based charges have been running for years and the trends have bene clear for years.

If you want to do something, vote at Local and General elections.

As for Gareth's repost of an article from a guy with an RX8, it's full of half baked statistics and self justifying rubbish. Anyone who claims an RX8 is efficient despite doing 260odd gms/km is seriously deluded imo...The writer quotes mpg figures but CO2 levels are based on average consumption: his mpg figures iirc were on a long run.

But hey even the Chancellor gets his stats wrong.:-)

Edited by madf on 13/03/2008 at 12:27

Budget - VED changes - davidh
Whoa! Everyone!

I ran round the office like a headless chicken yesterday too!

I drive a 2003 Vx Omega auto worth maybe 3.5K

It emits 276g/km - a gas guzzler - I could be sitting on a car thats now worthless and believe me, I dont like the thought of losing that kind of money.


This morning having slept on it I realise that the new rules MUST only apply to cars registered after the point in 2006 that the gas-guzzer road tax was introduced.

The budget PDF file I "think" is misleading as it tries to cram too much information in to one table and I think we have just pounced on what it unfortunately doesnt say.

Besides,if it is true (which I dont think it is) because its mis-leading then it gives Darling chance to wriggle out of it when he see's how unpopular it is.

If the new 13 bands apply retrospectively back to 2001 how come no-one has mentioned it in the press?

Car tax regimes have never been retrospective. This would be dynamite otherwise.

The current incumbents of Downing street are not that dumb surely?

Yes it will have the desired affect on re-sale of new gas-guzzlers but thats the point - I understand that.

Budget - VED changes - Marc
"If the new 13 bands apply retrospectively back to 2001 how come no-one has mentioned it in the press?"

Yes, it's really strange that isn't it...

On the official documentation, the title of table A.8a clearly states registered since 1 March 2001 - unfortunately

Edited by Marc on 13/03/2008 at 12:31

Budget - VED changes - shawad
This morning having slept on it I realise that the new rules MUST only apply
to cars registered after the point in 2006 that the gas-guzzer road tax was introduced.
The budget PDF file I "think" is misleading as it tries to cram too much
information in to one table and I think we have just pounced on what it
unfortunately doesnt say.


"With effect from 1 April 2009, and as set out in Table 8a, VED for cars, registered on or
after 1 March 2001, will be reformed to include six new bands. From 1 April 2010, a new first
year VED rate will be introduced. "

That pretty much says it all - VED for cars registered on or after 1 March 2001 will be reformed.

It doesn't say for Cars registered after 1 April 2009, or from 13 March 2008.
Budget - VED changes - davidh
>>That pretty much says it all - VED for cars registered on or after 1 March 2001 will be >>reformed.

>>It doesn't say for Cars registered after 1 April 2009, or from 13 March 2008.

Yeah, I know - thats my point - there "must" be an error in the cramming of data in the table.

Why make a point with the 23 March 2006 in notes 2) and 3) at the bottom of the table then?

But the crux of my argument is that someone has accidentally clumped the data together and I think it should read:-

Before 2001 - VED up in line with inflation or + 5 a ayear or whatever

2001-23 March 2006 as you were but with slight increases (naturally)

23 March 2006 - Watch out gas guzzlers and new cars we're coming to get ya with the new 13 band system.

I reckon I'll be okay with my cheap 2003 gas guzzler.
Budget - VED changes - davidh
sorry meant to put

23 March 2006 - Watch out gas guzzlers and new cars we're coming to get ya with the new 13 band system. We told you we'd ramp it to £400 for band G cars didnt we?
Budget - VED changes - DP
As I read it, my 2.0 Volvo S60 (current Band F) is going up from £210 in 08/09 to £300 in 09/10, and then another tenner(why???) the year after.

So I think you might be in for a shock.

I agree it doesn't make any sense at all. There is no environmental excuse or justification for backdating this to existing cars whatsoever. VED costs aren't affected by use or mileage, and scrapping cars before they are worn out is environmental lunacy. No sane person would condone doing so as environmentally acceptable, never mind beneficial.

It's blatant money-grabbing. I just wish the idiot had had the honesty to admit it.

Cheers
DP

Edited by DP on 13/03/2008 at 12:53

Budget - VED changes - davidh
Cars these days only last 10/11 years.

They will be looking forwards to reducing emissions not backwards and hammering the lower income traditional Labour voters.

They are not that stupid.

Really I dont think you have anything to worry about.

Moving forwards, you have choices when it comes to buying post 23 March 2006 cars.

Is anyone in agreement with my string of posts?
Budget - VED changes - PR {P}
I agree with everything you say, BUT, as has been released the tax will be retrospective. If there has been an error somewhere I would be mightily relieved.
As you said the weirdest thing about it is the lack of media reporting of it. Indeed, the BBC has a calculator which you put data in, and it says my tax will go from 205 to 210 (as it is currently band F with 287g CO2). I think this is wrong though
Budget - VED changes - nick74
Is anyone in agreement with my string of posts?


The table says it applies to cars registered after March 2001, they only mention 23/3/06 cars for the 2008-09 year, after that 23/3/06 ceases to be relevant.
The PDF will have been proof read about a million times before being released!
Budget - VED changes - PR {P}
The BBCs budget calculator THINKS that a now banded F car will go from 205 to 210 pounds....


news.bbc.co.uk/1/hi/in_depth/629/629/7290230.stm


Budget - VED changes - PR {P}
Sorry, just realised why, it is because it is for 2008 - 09, and the new tax bands are from 2009-10
Budget - VED changes - shawad
The BBCs budget calculator THINKS that a now banded F car will go from 205
to 210 pounds....
news.bbc.co.uk/1/hi/in_depth/629/629/7290230.stm


Which it will From 13 March 2008, but after 1 April 2009 the new banding system comes into play for ALL cars registered after 1 March 2001.

There's no ambiguity, just wishfull thinking on the part of some...
Budget - VED changes - DP
Is anyone in agreement with my string of posts


I completely agree with your sentiment, and that would have been the logical and fair way to do it. At least it would have given people a choice whether they were prepared to accept the cost and residual value hit before they bought the car in the first place.

Sadly, that is not what Darling has done, and has clobbered people with higher band cars dating back to 2001. He really has. It's quite clear.

And don't for a minute think that once more people buy diesels (the only reasonable choice now for low VED on a family sized car) and the treasury coffers start to suffer, he (or one of his successors) won't find an excuse to ramp VED up those as well, or at least move the goalposts again to catch people out.
They will be looking forwards to reducing emissions not backwards and hammering the lower income traditional Labour voters.


They couldn't care less. There are 3 million people doing very nicely on benefits who will vote for this shower, and a couple more million right at the top of the tree who are also doing well. Everyone else in the middle can go hang. They've made that clear since their first budget in 1997.

Cheers
DP







Budget - VED changes - KMO
"There is no environmental excuse or justification for backdating this to existing cars whatsoever."

I can see a justification. If he didn't backdate it people would assume that any future band changes also wouldn't be backdated, thus limiting their risk.

With the example set that bands are subject to change, people should hopefully realise that choosing a car in a high band will leave them exposed to unknown future increases, thus further dissuading them from buying such cars.

The bands have been ever-tightening for company cars, even ones already registered, so there's nothing new here. I think people are just upset because they'd been lulled into a false sense of security (fostered by the 23 March 2006 band G fudge) that the VED bands would never move.
Budget - VED changes - DP
I can see a justification. If he didn't backdate it people would assume that any
future band changes also wouldn't be backdated thus limiting their risk.


If his intention was to influence behaviour, all could have been made clear with a simple one-liner in the Budget statement. "All vehicles in Band(s) x registered from April 1st 2008 will be subject to annual review" or something similar.

What he has done with people owning older Band F and G cars is akin to shooting fish in a barrel. It will wipe thousands of pounds off residual values overnight, and leave people in a position where they have no choice but to cough up.

It doesn't present a problem for me financially - £205 to £300 (or even £400) a year isn't a lot of money in the greater scheme of car ownership, but it's the principle. I feel as if I've been ripped off, and all manner of other words not suitable for publishing on a family website. If the green movement want people on side they should be up in arms about what this incompetent shower of politicians is doing in their name. This is not the way to win friends or influence anyone.

Ultimately making people's behaviour greener can only happen with consent. Bludgeoning them with taxes just builds resentment.

Cheers
DP

Edited by DP on 13/03/2008 at 14:02

Budget - VED changes - TheOilBurner
What he has done with people owning older Band F and G cars is akin
to shooting fish in a barrel. It will wipe thousands of pounds off residual values
overnight and leave people in a position where they have no choice but to cough
up.


Totally, a tax that is more expensive to avoid then it is to pay - shooting fish is spot on.
I feel as if I've been ripped off and all manner of
other words not suitable for publishing on a family website.


Exactly my feelings DP. I'm also really hacked off with the media for completely failing to make people aware of what a dirty trick Darling has pulled.
Budget - VED changes - KMO
Still don't have a whole lot of sympathy. If it's hitting you, it's because you chose a relatively high-emission car - when I was buying in 04/05, I never considered for a moment buying anything in band F, let alone what became band G, when there were so many cleaner alternatives available.

And you've had years of low tax use out your band F/G car - it's not as if they're backdating the payments or anything. But if you want to keep driving it, it'll cost you.

Presumably this high VED will depress the second-hand market for larger cars and cause them to be scrapped earlier than smaller ones, which is the right way round.
Budget - VED changes - Garethj
Still don't have a whole lot of sympathy. If it's hitting you it's because you
chose a relatively high-emission car - when I was buying in 04/05 I never considered
for a moment buying anything in band F let alone what became band G when
there were so many cleaner alternatives available.


Can you just turn the smugness down a tiny notch? Thanks :-)
Presumably this high VED will depress the second-hand market for larger cars and >> cause them to be scrapped earlier than smaller ones which is the right way round.


I don't think scrapping a car just because the road tax is expensive is very environmentally friendly. Not if it's still in fine working order.
Budget - VED changes - DP
And you've had years of low tax use out your band F/G car - it's
not as if they're backdating the payments or anything.


Not really, I've owned it for less than a week. Changes to existing cars weren't even mentioned yesterday morning, let alone a week ago. And let's be clear, this is a humble four door family saloon with a 2 litre petrol engine. It's not the kind of V8 limo that Mr. Darling gets about in.
But if you want to keep driving it, it'll cost you.


You're right of course, but is this really the right message if we are supposedly heading for an environmental catastrophe? Is it wrong to drive a polluting car, or is it OK if you can afford it? Something doesn't add up.

And I repeat, causing any car to be scrapped early is so misguided from an environmental point of view that it beggars belief.

Cheers
DP

Budget - VED changes - MichaelR
>> With the example set that bands are subject to change people should hopefully realise that
choosing a car in a high band will leave them exposed to unknown future increases
thus further dissuading them from buying such cars.


But SOMEBODY will buy them becuase these cars ALREADY EXIST. It just means people will buy them for less money as they will be less sought after. It doesn't remove them from the road. It serves no purpose as it isn't discouraging people from REGISTERING NEW high emissions vehicles.

These cars are already with us!
Budget - VED changes - 659FBE
As a result of this latest tax collecting "initiative" I can see a healthy market emerging for diesel cars (especially) being chipped for more power.

This is at least one way of evading the duty increase on a simple basis of engine power per unit tax. As yet, there seems to be no provision for the Govt. database to be varied for individual cars. (They're not too good at databases, it seems).

A business opportunity...

659.
Budget - VED changes - UncleR
Could anyone confirm whether if you buy a tax disc in March 2009 to start on 1st April 2009 whether it will be at the new or old rates?

Thanks
Budget - VED changes - madf
This budget has zero to do with the environment. (Biofuels tax relief gone),

Darling was just pontificating...any excuse will do to raise taxes.. not that any is needed.

We need to pay for all the new motorways.. sorry speed cameras.. sorry traffic police.. sorry traffic wardens.. sorry speed humps.
Budget - VED changes - Marc
"I'm also really hacked off with the media for completely failing to make people aware of what a dirty trick Darling has pulled"

Agreed, although no surprise really, especially from the BBC. The smokescreen was created with the so called "showroom tax" which will be "avoidable" (IMO) so to speak anyway through dealer incentives like cashback, fitted accessories, preferable finance deals etc etc. Even if not, private punters will just factor it into the initial purchase price. Let's be honest, the savvy private buyer never buys brand new anyway.

The increased annual roadtax will be an ongoing burden.

Am I sore about all this? Too right, we've got a 53 Vectra and an 05 Galaxy and we're looking at an extra £300 pa in road tax between them - hardly the "typical gas guzzlers" as the media likes to call them eg Range Rovers, Ferraris etc
Budget - VED changes - zookeeper
why do'nt the taxman put a surcharge on electrically powered vehicles ? lets face it the plug they use to charge the batteries in the garage is connected via the national grid to a gas or coal powered powerstation is'nt it? i think some people think that zero emission vehicles recharge on fresh air !!
Budget - VED changes - b308
.. sorry traffic police..


Wouldn't mind if thats where the money was going.....

Re the pre 2001 cars, I feel their time will come - he hasn't thought of a method of doing them as yet, but he will do - one obvious one would be to have more bands based on engine size and fuel... and a tougher MOT....

Anyhow lets keep mum about it and not give him any more ideas!
Budget - VED changes - Devonboy78
Although others have picked up B308's points in posts earlier on, I agree completely that there does seem to be a very annoying trend for new parents to rush out and buy a Grand Voyager for their 1st new born! However we personally are not one of these. We managed perfectly well with our M-reg 3dr Corsa (which my wife still uses) with our 1st child, but with the twins that followed we had to have (my term 'need' in my op was inaccurate!) a larger car which takes, as others pointed out, 3 child seats across the back - trust me althogh I think the Fabia estate is a 'fab' car, you cannot get three of these across the back.

Back to VED issue, I still maintain this will hit larger-than average families very hard over the coming years. A further thought I had was that this likely to force these type of families into pre-2001 cars, which due to their age tend to be less reliable and safe.

DB

PS - I've signed the No. 10 petition for all the good it does.
Budget - VED changes - MichaelR
My mate thinks the whole thing is hilarious.

He drives a 2000 X plate 530i Sport Automatic with 258g/km of C02 but of course, it predates the 2001 changes. His road tax rises to just £200.

I, however, have a newer but otherwise identical 530i Sport - although mine has a manual gearbox and thus develops noticeably less CO2 - 229g/km. My road tax is already £205 and, from next year, will be... £415.

Even though I only drive 5k a year..
Budget - VED changes - MokkaMan
I however have a newer but otherwise identical 530i Sport - although mine has a
manual gearbox and thus develops noticeably less CO2 - 229g/km. My road tax is already
£205 and from next year will be... £415.


I am in the same boat 530I 2001Y auto Touring, now paying top whack regardless of the fact it is only a three litre engine (when there are many more powerful engines around) and I only drive about 4k a year in it Fair I don't think so..........
Budget - VED changes - DP
Re: the two BMW examples above:

Of course, the sensible thing for Darling to have done would have been to abolish VED altogether, accompanying it with a corresponding increase fuel duty. The problem is, that gives people a choice (they can drive less and pay less), and allows them to only pay for what they use.

This approach makes sense on so many levels. Fuel duty is unavoidable (unless you steal fuel), self policing, automatically collected, and self-adjusts for the actual "damage" your combination of economy and mileage does to the environment.

Nothing I have seen in any of these proposals convinces me that the environment actually had any genuine part to play, apart from as a nice, pre-packaged excuse.

Cheers
DP
Budget - VED changes - Pica
And the door is now open to ditch the 3000cc in favour of a much nicer 5400cc as the tax will be the same. Also, (if you can afford it) why bother with a family people carrier when you can get a nice Audi Q7 for £100 per year more in VED
Budget - VED changes - AdrianM
"Nothing I have seen in any of these proposals convinces me that the environment actually had any genuine part to play, apart from as a nice, pre-packaged excuse."

Quite so, the 'environment' is just your spoon full of sugar to help the medicine go down (for those dim enough to believe the spin). The govt need our money and culculate that they will take x million pounds from VED. If we all scrap our high tax band cars today and replace with low emmisions cars the govt will still want x million pounds in VED so guess what will happen to the VED rates.........
Budget - VED changes - teabelly
It will increase the rate of VED evasion. At some point if enough people refused to pay then they'd have to go away and leave us alone. If only 10% of people refused to pay then that would be enough to bring the whole system down. I suspect it will be all down to the EU to increase the cost of car ownership.

If everything was put on the fuel then it should also be identical levels for buses, trains and air lines. This would level the playing field so that the most efficient form of transport would be the cheapest and the cleanest. Of course they'd never dare do this as it would show up how over priced and polluting public transport really is. All the revenue should also be ploughed back into transport and infrastructure.

VED for trucks needs to rise massively as they are damaging the roads. Near me there are quarry lorries thundering up and down. I have no idea how much damage they do but I bet they do the bulk of it on this stretch of road. I bet they aren't asked to cough up to repair the road they use either. The VED doesn't cover the likely damage at all as it is only a few grand. It needs to be more like 50k per truck.
Budget - VED changes - Marc
Seems the penny's finally dropped with the media - Telegraph covering full implications today.
Budget - VED changes - DP
A colleague has just reminded me while we were ranting about it over lunch that you can write to Mr. Darling via his House of Commons e-mail address.

findyourmp.parliament.uk/commons/email/l/814.html

Ok, strictly speaking it's for constituency issues, but I'll feel better just for trying.

Cheers
DP

Edited by DP on 14/03/2008 at 14:17

Budget - VED changes - Westpig
I actually think this could do me a favour.

Six years ago I bought a nice car from a dealer, second hand and its' C02 output, being a 3 litre V6 is 259g/km...so if reg after 2001 (which it isn't) i'd be liable for a very high road fund tax...which puts me off buying a newer one...er no actually

over 6 years, very roughly, my car has depreciated by £3,333 per year and currently costs about £180 p.a. to tax

if i wait for a while until large luxury cars are enduring plummeting 2nd hand values, which is what all this hysteria will do....then although buying one of them will hammer me in road fund licence, i'll save big time in depreciation, because it will already have taken a big hit before i buy it.

swings and roundabouts....... and with the above economics i'll be able to keep the old one until it becomes a classic

Budget - VED changes - Armitage Shanks {p}
DP. Plus it makes foreigners and tourists pay to use our roads too. And it would free up some civil servants and computer capacity to foul up the Identity Card scheme we are all looking forward to!
Budget - VED changes - astrabob
There are cases where a pre 2001 car pays higher road tax than an identical post 2001 car.

I have a Vauxhall Astra diesel, with a 1700cc engine which has emissions of 132g/km.

Because it is an X registration car, the current road tax is £185pa, which is due to increase to £200pa.

But had it been a Y registration, or later car, I would be paying £120pa, which would be due to fall to £110pa.

I don't think that this is a vote winner with me!