The Budget 2017 For New Cars

Another year and another Autumn budget is delivered so here is how the 2017 budget will affect everything automotive from new vehicle excise duty rates for diesels to new driverless vehicle trials before 2021.

The New Diesel Tax System for New Cars Explained.

The new vehicle tax rates just changed earlier this year back in April and we’re still getting used to the revised system. Now a new plan to change it again for diesels only is going ahead in April 2018, this will only affect new diesel cars registered from April next year onwards. So if you’re already an existing diesel car owner there’s nothing to worry about with the new budget, the same goes for new and existing van drivers.

New diesel fuel cars registered from April 2018 onwards that do not meet the current Euro 6 emissions standards under both the laboratory test and the new real-world driving emissions test will move a up a tax band for the first year initial rate, then the standard rate will apply from the second year onwards.

The Treasury estimates that less than two million new cars will be affected by the new standards over a two year period from 2018 to 2020. After this the manufacturers will have caught up and introduced new technologies, designed to reduce the emissions and pass the tests. With the new real-world driving tests any new car is allowed up to a limit of 1.5 times the existing 80mg/km of NOx currently used in the lab test.

New emissions test chart 2017

New cars that are already pretty low down on the tax bands will only see a first year rise of £20 but for a car with a much higher first year rate of say £200 the next band up is at £500, so if the car doesn’t pass the new tests then the price will be £300 dearer from new.

The Government estimate the new system will earn them over £175 million extra revenue over the two years before the technology is advanced and the cleaner diesels become. Another increase to diesels is on the company car tax, an extra percent is added to the tax if they do not meet the new regulations.

Diesel fuel pumps at a fuel station

Fuel duty is frozen once again

The chancellor has decided to follow previous budgets by freezing the fuel duty on both petrol and diesel, the longest fuel duty freeze in a generation. Since 2010 it’s estimated that the total cost to the Government has been £46 billion.

Outlander hybrid PHEV

Electric Cars and Charging receives more funding.

The Treasury is putting aside an additional £400 million in funding for the UK’s charging infrastructure as well as another £40 million for research and development into new charging ideas and designs. The current full electric and low emission hybrid grant receives an extra £100 million in funding to make that decision of a new low emission car a little easier as you save £4,500 and £2,500 depending on the emissions.

Driverless Cars

The Government also announced that new reforms to the current regulations would come into force by 2021 to allow the testing of driverless cars on the UK roads. Making sure that Britain is at the forefront for autonomous and electric vehicle technology as we leave the European Union.

Current legislation requires a driver in autonomous test vehicles and they also need the relevant equipment to take back control of the car. Under new proposals the drivers seat will be missing completely and testing will go ahead with no safety operator in the car.