posted 7 months ago

Budget 2016 – What It Means For Motorists

The Budget for 2016 has been delivered by Chancellor George Osborne. But what does it mean for us motorists?

Key announcements that directly effect UK motorists include the freeze of fuel duty for the sixth year running which, according to the Chancellor, will save the average motorist £75 a year. The average small businessman with a van will save £270 a year.

To add to fuel price status, the petroleum revenue tax for oil producers will be “abolished”, along with a 50% cut in tax on oil for producers, resulting in an overall tax of 10%. This may also have a knock-on effect on fuel prices, later down the line.

severn crossing

 There will be a decrease in the toll charge in 2018 on the Severn Crossings between England and Wales. Charges are currently £6.60 for cars, £13.20 for vans and £19.80 for HGVs, with motorcycles travelling across for free.

£230 million has been allocated for updates to the UK road system, particularly in the North. In a bid to balance the country, the M62 will get four lanes, as well as the development of a new tunnel called the Trans-Pennine Tunnel, which will run from Manchester to Sheffield. Upgrades will also be made to the A66 and A69.

Payable on both car insurance and breakdown cover, Insurance Premium Tax (IPT) is set to go up, from its current 9.5% to 10%. This additional money will be used to boost flood defences in the UK.

There are also planned trials of comparative fuel price signs on the motorway, firstly on the M5 motorway between Bristol and Exeter. These trials are set to begin soon. 

Finally, despite not mentioning it in his announcement, the Budget 2016 details the Government will undertake trials of driverless cars on the strategic road network next year.


Not too long ago, the allocation of a £50 million investment into a Pothole Action Fund for England was announced, which is set to begin in the next year. £130 million has also been set aside for the fixing of roads and bridges, which were damaged by recent storms in the UK.