New bands of VED - will become roads fund.
Fuel duty frozen this year.
"Productivity means building more roads"
CityCyclingEdinburgh Forum » Debate!
Budget
(24 posts)-
Posted 8 years ago #
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Time to register idontpayroadtax.com then?
Posted 8 years ago # -
Only in England according to the BBC. How does that work?
Posted 8 years ago # -
I don't understand the 'road fund' thing. If the money from general taxation isn't enough to sustain the existing roads how will creating a fund that comes only from VED fix things? The new road fund will be smaller than the money from general taxation.
Posted 8 years ago # -
The new road fund is really just a top up. Not that Joe Public will pick that up, and will see it as further evidence that those with cars do indeed own the road.
Posted 8 years ago # -
So, VED raised £5.63 billion in 2009.
Road spending for 2010/11 was about £9.5 billion.
The new proposals will not increase the amount of VED.
So...
Robert
Posted 8 years ago # -
1% pay rise restriction for 4 years for public sector workers.
£9 'Living wage' by 2020, more than the £8 Labour had as an election promise.
Posted 8 years ago # -
It was all those pesky cyclists, bleating on soshal medja about how road tax was abolished in 1935.
We needed to fix that...
Posted 8 years ago # -
I assume it's just semantics to keep the motoring lobby happy and that the road building fund will be topped up from the general taxation fund.
Presumably the equivalent amount to what goes into the tarmac laying fund will be transferred to the Scottish block grant (or whatever it is called) and not reserved for special purposes.
Posted 8 years ago # -
Of course a true Conservative government would remove the subsidies for motoring and make users pay the full costs. That would have to include the cost of road traffic collisions estimated to be £34bn, and pollution estimated to be £??bn
So road tax would have to increase by a factor of at least 10 to cover that lot.
Posted 8 years ago # -
"
Vehicle Excise Duty is now for new roads
Vehicle Excise Duty is a tax on pollution: those cars which create the most greenhouse gases are taxed most heavily. Siphoning that revenue into a new Roads Fund will inevitably lead to further pollution and undermines its original purpose.
Over this parliament alone £15billion will be spent on new roads. Research proves that creating more road capacity will lead to increased demand, and therefore more miles driven.
"
Posted 8 years ago # -
"
Carlton Reid (@carltonreid)
08/07/2015 16:23
Will owners of internal combustion engine cars shout “get off the road, you don’t pay for them” at e-car owners?http://pic.twitter.com/d6uCCRFq7E
"
Posted 8 years ago # -
Not slated to take effect until 2020, I believe, so with a bit of luck this is just "filler" budget content that will be buried down the legislative agenda, and who knows, we might have a new government by then.
Won't change motorists' perception of being hard-done-by one bit, though.
Posted 8 years ago # -
Another worrying aspect of this (if it ever becomes reality) is that it could prejudice the transport budget even more towards motor vehicle infrastructure, as motorists will be putting most money into it.
Posted 8 years ago # -
There's a graph doing the rounds on Twitter that shows why Osboik has had to reform VED/whatever tax.
Due to more new vehicles falling into the lower (or non-paying) bands, the forecast for VED takings at the treasury over the next 5 or 10 years are going to fall off a cliff. Without reform, the Treasury would be losing all this money. The reforms are designed to mean they continue to receive similar receipts from VED in the future as they do now.
Man from the society of car salesmen on the BBC was quoted as moaning about the new upper (or "premium") rate of tax, saying "... the introduction of a surcharge on premium cars risked undermining growth in UK manufacturing and exports. British-built premium cars are in increasing demand at home and globally, and the industry helps to support almost 800,000 jobs in the UK. Levelling a punitive tax on these vehicles will almost certainly impact domestic demand."
Which is cobblers of course, as people who buy these cars do so as a status symbol, regardless of the cost (and the additional cost the tax poses is not a big percentage on the overall vehicle cost). Also its applied to all cars in this band, not just "British" (built, not owned) premium-band cars so is highly unlikely to have any impact whatsoever to influence peoples luxury car buying decision making.
I wonder if other forms of tax are going to be split into terms such as "standard" and "premium", like air travel.
"Oh, I pay first class income tax. Get back in economy, peasant".
Posted 8 years ago # -
The problem with the new VED is that there is no incentive (after the car is 1 year old) to buy efficient vehicles. This is because the VED charge is essentially the same for all vehicles after year 1, i.e £140.
Motoring groups gave a mixed reaction to the move....
..."While we are pleased that zero-emission cars will, on the whole, remain exempt from VED, the new regime will disincentivise take up of low emission vehicles," he said.
"New technologies such as plug-in hybrid, the fastest growing ultra low emission vehicle segment, will not benefit from long-term VED incentive, threatening the ability of the UK and the UK automotive sector to meet ever stricter CO2 targets."http://www.bbc.com/news/business-33447106
Posted 8 years ago # -
And the problem for the British car industry is that they all produce low-volume premium, specialist or high-end cars, taxis and campervans.
Mass-market British car manufacturing simply does not exist.
So British car manufacturers will be disproportionately affected.
Posted 8 years ago # -
The problem with the new VED is that there is no incentive (after the car is 1 year old) to buy efficient vehicles.
There's still the cost of the fuel, of course, which is a fairly chunky incentive to buy an efficient vehicle, especially if you do lots of miles, but I'd have thought demand for big expensive cars is inelastic anyway...
Posted 8 years ago # -
Mass-market British car manufacturing simply does not exist.
I think that's a bit of an urban myth. UK Car production is comparable to 1970s and in excess of 1960s by volume, and forecast to reach an all-time peak in 2017. The luxury component of that is about 1/4 by volume (and that's nearly all Jaguar-Land Rover..
Nissan in Sunderland produces over half-million mass market cars a year; Honda (Swindon), Toyota (Derby) and MINI (Oxford) all in the realms of 200,000 per year. Opel in Ellesmere Port also in 6-figures. These 5 companies account for nearly 75% of all UK production.
Nissan itself is responsible for 1/3 of all UK car production. That's a pretty strong bargaining position for them given they're the main private sector employer in the economically fragile Northeast of England.
Posted 8 years ago # -
Yep, there's a difference between British car manufacturing, and British owned car manufacturers. Building cars in the UK is doing pretty well indeed.
Seem to remember a stat from years back that LTI is the biggest independent British car producer. That still right?
Posted 8 years ago # -
"
Seven charities have called for a Scottish alternative to the Roads Fund for England, which was announced by Chancellor George Osborne in his Summer Budget 2015, and will see Vehicle Excise Duty (VED) – a tax on pollution – spent exclusively on motorways and major trunk A-roads from 2020.
During his budget statement, Chancellor Osborne said that the UK Government would “engage with the Devolved Administrations on how the money is allocated there.”
In a letter to the Scottish Government, Transform Scotland, Sustrans Scotland, WWF Scotland, Friends of the Earth Scotland, Ramblers Scotland, Paths for All and Living Streets Scotland have called for “an approach which reflects Scotland’s world-leading ambition on climate change”.
"
Posted 8 years ago # -
Hmmm. Given that the SNP are very keen on dual carriageways, I suspect this is another area where we'll see no deviation from policies south of the border.
Posted 8 years ago # -
LTI is the biggest independent British car producer
Not since they've been owned by the Chinese (Geely Automative), no.
"London" taxis are made in Coventry.
Posted 8 years ago # -
"
Use of VED money may sound an abstract decision, with little impact on you – but before long it could mean more cars and lorries entering into cities, from expanded trunk roads – or it could mean European-level cycling budgets, double-track railway lines to the north, and many fewer potholes in towns and cities.
"
http://www.spokes.org.uk/2015/09/cash-for-cycling-or-for-trunk-roads/
Posted 8 years ago #
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