How will the budget affect drivers?

Did you watch the budget? From major changes for savers to beer going down 1p a pint there was some good news in there, but how will the budget affect motorists?

One of the major decisions made was to freeze fuel duty until early 2015. George Osbourne stated that in effect this would make petrol prices an average of 20p a litre cheaper than it would have been under the previous government.

Vehicle excise duty is to rise in line with inflation, meaning that band D and above will increase by at least £5. Tax will be payable either monthly, annually or biannually, but there will no longer be an option to transfer remaining tax if you sell your vehicle.

There’s good news for classic car owners, with tax exemption moving to a 40 year rolling period.

It was also announced that £200 million will be allocated to local councils to fix potholes. Potholes have reached a really problematic level after that terrible winter we had a few years ago, so this will help, but as the Institute of Advanced Motorists have stated that the cost to repair all the potholes in the UK would cost £10 billion, it’s a small drop in the ocean.