As part of his Budget chancellor George Osborne has announced that Fuel Benefit Charge, Van Benefit Charge and Vehicle Excise Duty (VED), will all be increased by RPI - which stood at 1.3% in January 2016.
 
These changes will come into force from 1 April 2016 for VED and 1 April 2017 for Fuel Benefit Charge and Van Benefit Charge. Should interest rates remain steady this would mean an increase in the top band for VED (those emitting more than 255g/km) of just £6 - with little, if any, change expected for the lower bands.
 
Meanwhile, the Government will extend support for zero-emission vans from 6 April 2016, so that the Van Benefit Charge will stand at 20% of the main rate in 2016/7 and 2017/18, increasing between then and 2022. The impact of this incentive will be reviewed in the 2018 Budget, along with the enhanced capital allowances for zero-emission vans.