232 lines
6.1 KiB
Plaintext
Executable File
232 lines
6.1 KiB
Plaintext
Executable File
motoring
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news
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8401274
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-----
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# What the Budget means for motorists
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## Fuel duty will be cut by 1p per litre from 6pm, and an additional
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£100million given to councils to fix potholes.
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![What the budget means for motorists ][1]
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Drivers filling up from 6pm today will benefit a 1p per litre reduction in
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fuel duty Photo: JANE MINGAY
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[![][2]][3]
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By [Chris Knapman][4] 3:03PM GMT 23 Mar 2011
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[Comments][5]
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An immediate reduction in fuel duty and more money for councils to repair
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Britain's crumbling road network - those were the two headlines for motorists
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from today's Budget, delivered by Chancellor George Osborne.
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Admitting that "the price of petrol has become a huge burden on families", Mr
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Osborne went on to describe how the cost of filling up a typical family car
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had increased by £10 in the last six months.
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Before stating how the government would help motorists faced with such high
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prices, he set out to explain what's within its control and what's not.
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"Britain is not in charge of world oil prices", he said. "But British
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Governments are in charge of the duty we levy on petrol."
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Mr Osborne went on to say that, after consideration, the government had
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rejected a separate VAT rate for petrol on the grounds that it would be
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"illegal". However, Labour's fuel escalator, which adds a penny on top of
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inflation, will be cancelled and a new "fair fuel stabiliser" introduced.
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As part of this, the "supplementary charge levied on oil and gas production
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will increase from 20 per cent to 32 per cent," said Mr Osborne, raising
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£2billion of additional tax revenue from oil companies. This will be used to
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delay next week's planned fuel duty increase of almost 5p per litre until 2012
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(and the planned April 2012 inflation rise until the following summer).
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## Related Articles
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* [George Osborne 'right to tackle Scotland's high fuel prices'][6]
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23 Mar 2011
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* [Last flying Vulcan comes under fire from new VAT rules][7]
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22 Mar 2011
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22 Mar 2011
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* [Motorists to be denied blood tests when stopped on suspicion of drink
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driving][9]
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22 Mar 2011
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* [James Cracknell: my dream garage][10]
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21 Mar 2011
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* [Porsche's 672,000 918 Spyder][11]
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21 Mar 2011
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The "fair" part of the fuel stabiliser involves the possible reintroduction of
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the escalator, and a reduction in the higher rate of oil tax, should oil
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prices fall below $75. "That is how it will work," said Mr Osborne. "No
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escalator when the oil price is high. No extra tax on the profits of North Sea
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oil companies if the oil price falls and stays low."
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The Chancellor also announced that further help to motorists would start at
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6pm today, when fuel duty would be cut by 1p per litre.
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Commenting on the subject of fuel duty, IAM chief examiner Peter Rodger said:
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"Reducing fuel duty is a welcome break for hard-pressed motorists and
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businesses, but eco-driving is the only guaranteed way to reduce motoring
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costs. It's no longer an ethical choice, it's a money-saving essential -
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especially in rural areas where driving is a necessity."
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Elsewhere in the Budget, the Chancellor promised £100million of additional
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funding for councils to fill potholes. Warranty Direct managing director and
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founder of **[Potholes.co.uk][12]**, Duncan McClure Fisher, said: "Motorists
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will appreciate this extra support as it will mean less cars get damaged. It's
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another signal that the Government is recognising the need to support
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motorists, but the focus needs to be on local and minor roads.
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"It's not a solution to the problem," he added, "but at least it's a step in
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the right direction."
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Other points of note for motorists were that vehicle excise duty rates will
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increase only by inflation, while those for HGVs have been frozen.
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Mr Osborne also announced that Approved Mileage Allowance Payments, which have
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not increased since 2002, will rise from 40- to 45p per mile.
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"And I can tell the House that we will extend this relief to cover volunteers
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travelling as passengers - as charities and others have been calling for over
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many years", he said.
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[**The 2011 Budget Live**][13]
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[X][14] Share & bookmark
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Delicious Facebook Google Messenger Reddit Twitter
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Digg Fark LinkedIn Google Buzz StumbleUpon Y! Buzz
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[What are these?][15]
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* Share: [Share][14] [ ][16] [ ][17]
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[Tweet][18]
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http://www.telegraph.co.uk/motoring/news/8401274/What-the-Budget-means-for-
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motorists.html
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Telegraph
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## [Motoring News][19]
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* ### [Lifestyle »][20]
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* ### [Motoring »][21]
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* ### [Chris Knapman »][3]
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Related Partners
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* [Search the market for car insurance][22]
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In motoring
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[![Aston Martin royal wedding][23] ][24]
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### [William and Kate's Aston Martin][24]
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[![Light graffiti supercars in London by Marc Cameron and Mark Brown][25]
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][26]
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### [Light Graffiti Cars][26]
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[![Chancellor George Osborne arrives to give a post-Budget television
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interview on Thursday][27] ][28]
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### [March 24: reaction, analysis][28]
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[![For the past 11 years Herman Zapp 42 and his wife Candelaria 40, from North
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Carolina, USA, have been driving around the globe in a 1928 Graham Paige
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vintage car][29] ][30]
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### [The ultimate road trip][30]
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[![A design study for the Wiesmann Spyder concept car, which - if produced -
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would have a four-litre engine, weight just 1,000kg, produce 420hp and have a
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top speed of around 290 km/h (180 mph)][31] ][32]
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### [Geneva Motor Show part 2][32]
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[X][14] Share & bookmark
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Delicious Facebook Google Messenger Reddit Twitter
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Digg Fark LinkedIn Google Buzz StumbleUpon Y! Buzz
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[What are these?][15]
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Share:
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* [ ][14]
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* [ ][16]
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* [ ][17]
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* [Tweet][18]
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* Advertisement
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![][33]
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telegraphuk
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Please enable JavaScript to view the [comments powered by Disqus.][34] [blog
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comments powered by Disqus][35]
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