Rachel Reeves confirms £1 car tax charge for one | Tech News
Rachel Reeves has confirmed that one group of drivers can pay simply £1 to get behind the wheel this 12 months after a main tax replace. The Chancellor has revealed haulage companies will take pleasure in a 12 month Vehicle Excise Duty (VED) vacation, with street customers set to avoid wasting a whole bunch of kilos in prices.
The Treasury stated hauliers can pay simply £1 at renewal, saving £600 for a typical heavy lorry and up to £912 for some of the most important autos on the street. With electric vehicles now paying VED to make use of the roads, the new fee means lorries and HGVs would be the least expensive autos to tax within the UK.
The Treasury defined that the VED vacation was being launched as a result of the battle within the Middle East has pushed up prices for hauliers. Prime Minister Keir Starmer stated: “We are giving our hauliers a 12-month vehicle tax holiday, helping to keep prices down, and we are backing drivers by extending the freeze in fuel duty for the rest of the year.”
Experts, together with Logistics UK, have beforehand warned that operators have been struggling to soak up rising prices. The Road Haulage Association additionally pressured that companies have been being put below strain by rising petrol and diesel fuel costs.
The RHA defined that a one-off 12-month HGV VED ‘vacation’ will offer some aid to companies, however pressured the Government’s motion can have “limited impact” as they known as for additional modifications.
Richard Smith, RHA Managing Director stated: “The immediate picture is far more pressing. Cash flow is a huge challenge for transport operators against a backdrop of cost pressures, low margins, and the high rates of insolvency plaguing our sector. Businesses need help now.
After the announcement, Rachel Reeves stated: “I’m keeping taxes down for drivers and businesses – putting money in the pockets of millions of workers and cutting costs for farmers and hauliers.”
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