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Writer's pictureAaron Alleyne-Wake

Budget 2016: How Are Motorists Affected?


Chancellor George Osborne has announced the budget for 2016 but what does it mean for motorists? Read on to found out how.

Fuel Duty

So this was one of the burning topics (no pun intended) of the this year's budget but thankfully it has been frozen for the 6th year in a row which is set to save the average driver £75 per year and the average small business van driver £270 per year. An increase in fuel duty was expected but Osborne says that "he knows that it poses a cost to families" and therefore it has been scrapped.

Insurance Premium Tax

There has been an increase in insurance though, as they rise from 9.5% to 10% to help pay for flood defences.

Driverless Car Legislation

This was one of the topics that was expected to be announced but there was no announcement on this topic which is a bit odd as this is a hot topic at the moment. However, the documentation for the budget does confirm that trials for driverless cars will go ahead in 2017.

Road Network Upgrades

£230 million has been set aside for road improvements in the north which will see the M62 upgraded to four lanes as well as improvements being made to the A66 and A69.

Tunnel Road

A plan to build a tunnel road under the Pennines from Sheffield to Manchester have been announced which will be 18 miles long.

Toll Charge Decrease

From 2018, tolls from on the Severn Crossing will be halved, the current prices are £6.60 for cars, £13.20 for cars, £19.80 and motorcycles go free.

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