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Emergency Budget 2010: What can we expect?

The Emergency Budget on Tuesday 22 June holds many unknowns for the UK's 34 million drivers and comes less than three months since the last Budget, under the Labour government.

Before the general election, the Conservatives and Liberal Democrats held some starkly opposing views, but now as a Coalition they have to present a united front. There are undoubtedly going to be cuts in spending, with several major road projects aready shelved. The new Chancellor, George Osborne (pictured left) will deliver the Emergency Budget, but which policies are likely to make it through and which will be dropped?

We highlights the key areas that will affect motorists:

Fuel costs

One of the most significant election claims of the Conservatives was to introduce a Fair Fuel Stabiliser to lessen the burden of this stealthy car tax. As fuel prices soar beyond any previous highs, the Tories Fair Fuel Stabiliser will be something every driver will hope makes it through to the final speech delivered by Chancellor George Osborne.

A fuel stabiliser would link the price of fuel paid at the pumps to the cost of oil on the world market. In doing this, the government would make the price drivers pay for fuel more transparent and force it to ride and fall as oil prices fluctuate.

Road pricing

Another key area where the Conservatives and Liberal Democrats differed most on transport before the election was roads pricing. The Tories oppose roads pricing where the Liberal Democrats feel it has a place. However, the Liberal Democrats have stated they prefer a revenue-neutral system of roads pricing where the money raised is sufficient only to fund maintenance of motorways and major trunk roads, rather than trying to make a profit from charging.

At the election, the Liberal Democrats also called for more freight to be moved on to the railway network, with financial support for this idea coming from a reduction in the major roads budget.

Car tax rates

Always a major talking point in any budget, the rate of VED (vehicle excise duty) or car tax to most people, has seen several changes over the past few years with the new showroom tax introduced in April 2010. The current tax rates are designed to encourage buyers to choose cars that emit low levels of CO2 and so it's unlikely there will be any significant changes to te current system.

>> Find out how much your car is to tax

Electric vehicles

Both of the Coalition parties has pledged to further the cause of green driving and the Conservatives say they are committed to offering incentives for electricity companies to roll out a network of electric car charging points around the UK.

However, the Coalition has not confirmed that it will continues with the previous government's plans to offer a grant of up to £5000 to those choosing an all-electric car from January 2011.


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