Fuel duty – Fuel duty will be frozen for a ninth successive year
saving the average driver a cumulative £1,000 by April
2020, compared with what they would have paid
under the pre-2010 fuel duty escalator. (11)
Alternative fuels – Following review, the government will
maintain the difference between alternative and main road fuel
duty rates until 2032 to support the de-carbonisation of the UK
transport sector, subject to review in 2024.
Introduction of the Worldwide harmonised Light vehicles Test
Procedure (WLTP) –
The government will review the impact of WLTP on
Vehicle Excise Duty (VED) and company car tax
(CCT) to report in the
spring. WLTP aims
to provide a closer representation of ‘real-world’ fuel
consumption and CO2 emissions.
Vehicle Excise Duty (VED): Uprating – From 1 April
2019 VED rates
for cars, vans and motorcycles will increase in line
with RPI. To
support the haulage sector, the government will freeze the Heavy
Goods Vehicle (HGV) VED for 2019-20. (62)
Vehicle Excise Duty (VED): Vans – The government will
shortly publish a summary of responses from the consultation
on VED reform
for vans, published in May 2018. The response will set out
proposals to introduce environmental incentives from April 2021.
Bands and rates will be set out ahead of Finance Bill 2019-20.
Vehicle Excise Duty (VED): Blood Bikes – To align the tax
treatment of the transportation of blood and medical supplies by
the national charity Blood Bikes with other emergency vehicles,
the government will introduce an exemption for the purpose-built
vehicles operated by Blood Bikes from April 2020.
Company vehicles – From 6 April 2019 fuel benefit charges will
increase in line with RPIand the van benefit charge will
increase in line with CPI.
Air Passenger Duty (APD)
– Short-haul APD rates for 2020-21 will not
rise, remaining at the same level they have been since 2012,
benefitting 80% of passengers. Long-haul
rates will increase in line with RPI. The rates for long-haul economy
will increase by £2, and the rates for those travelling in
premium economy, business and first class will increase by £4.
Those travelling long-haul by private jets will see the rate
increase by £13.
