Fuel Duty frozen and car tax discs scrapped

Chancellor George Osborne has frozen fuel duty until after the next election and physical car tax discs will be scrapped in 2014.

Fuel duty makes up a painful chunk of the price of petrol and diesel, and it was due to be increased again next September.

But Chancellor George Osborne has announced that the tax hike will be scrapped – as has been the case every year sicne the Con-Dems came to power – saving motorists an additional 2p on a litre of fuel. It may not be a price cut, but at least it’s not going up.

The total cost of not increasing fuel duty in line with Labour’s intention will have cost over £20 billion in the lifetime of this parliament.

Not only has George Osborne scrapped the rise in fuel duty, he’s also scrapping tax discs. Sadly, you’ll still have to pay, but there will no longer be a physical tax disc to stick on the windscreen.

It seems law enforcers no longer bother to check windscreens for a current tax disc but rely instead on electronic checks to make sure the vehicle is taxed and insured.

The move will save £7 million a year, and the premium for buying a 6 month tax disc instead of an annual one will reduce to 5 per cent, and owners will also be able to pay by monthly direct debit for the same 5 per cent charge.

It’s the end of paper tax discs after 93 years.