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YOUNG AT HEART: The Budget - To 2012 and beyond

Date: 01 May 2009

Tristan Young is Editor-in-chief of BusinessCar

This year's Budget was far more interesting for the business car sector than anyone predicted.

First off the scrappage scheme was a complete non-starter for fleet as it only covers new cars and only offers half the expected amount. At least RVs shouldn't be affected.

It's great that the Government has stuck to its promise, revealing BIK?levels for three years away, and it's even dropped hints about year four and beyond. However, there was no mention on tax on free fuel, which the November 2008 Pre-Budget claimed would rise in line with inflation and be revealed in the 2009 Budget.

Amazingly, all the hints for company car tax from April 2012 even seem sensible.

However, the big question is what will happen when we've all moved to electric cars, and have zero CO2 tail-pipe emissions? It's unlikely that drivers and businesses will pay zero tax. In the cyclical way things work in politics and economics, perhaps we'll move to a mileage-based scheme.