Fuel Duty:
Of major significance for fleets was the announcement of a continued freeze on fuel duty for 2016-17 at 57.95 pence per litre – the longest fuel duty freeze in over 40 years.
And the Government also announced that it will start trials of comparative fuel price signs on the M5 between Bristol and Exeter by spring 2016 to drive fuel price competition and help motorists save money.
Van Benefit Charge (VBC):
From 6 April 2017 the main VBC will increase by RPI. The Government also said it will extend VBC support for zero-emission vans so that from 6 April 2016 the charge will be 20% of the main rate in 2016-17 and 2017-18, and will then increase on a tapered basis to 5 April 2022.
The Government added that it will review the impact of this incentive at Budget 2018 together with enhanced capital allowances for zero-emission vans.
Funding for low emission vehicles:
The government will provide £38m in grants for collaborative R&D into low emission vehicles. These will be delivered through the Office for Low Emission Vehicles (OLEV) and Innovate UK and will be matched by industry.
The Midlands will also receive over £15m funding to support R&D into lowering vehicle emissions.
Autonomous Vehicles:
The Chancellor used the Budget to announce a package of support measures for autonomous vehicles, which will see:
- Trials of driverless cars on the strategic road network by 2017
- A consultation this summer on removing regulatory barriers within this Parliament to enable autonomous vehicles on England’s major roads
- The implementation of a £15m ‘connected corridor’ from London to Dover to enable vehicles to communicate wirelessly with infrastructure and potentially other vehicles.
Transport Infrastructure:
The Government said it is launching the process for setting the Second Roads Investment Strategy, which will determine road investment plans for the period from 2020-21 to 2024-25.
Road improvements including the allocation of an extra £161m to Highway England upgrade the M62 to four lanes, as well as £75m to develop the case for a potential Trans-Pennine tunnel between Sheffield and Manchester and options to enhance the A66, A69 and the north-west quadrant of the M60.
The Government is setting out how the Pothole Action Fund will be allocated across England in 2016-17, with £50m allowing local authorities to fill nearly a million potholes.
Severn Bridge Toll:
The Government said it will, subject to consultation, halve tolls after the existing concession on the Severn River Crossings ends in 2018. It also added that it will evaluate the costs and benefits for developing a free-flow barrier-free tolling system.
