BUDGET 2007

As was very widely predicted, the motorist gets it again and is going to support the next round of Government expenditure to a greater degree. The good news is that the Chancellor has maintained his commitment to LPG in recognition of its emission advantages over petrol and diesel.

Whilst petrol and diesel duty will increase by 2p per litre this October, a further 2p per litre in April 2008 and an additional 1.84p per litre in 2009, the differential in duty for LPG will reduce by 1p per litre when compared with petrol and diesel as previously announced in earlier budgets. This is in line with the three year commitment to alternative fuels previously highlighted by the Government to 2008-9.

There, are also big changes to the VED, or road tax to you and me, with the lowest band B costing £35 per year ( a reduction of 30%) Bands C - E increasing £15 over the next three years, Band F increasing by £20 and Band G increasing to £400 by 2008-9. More detailed information regarding effects on company car and fuel allowances can be found at www.hmtreasury.gov.uk