Gordon Brown's (final?) Budget has not exactly proved to be good news for the motoring public. Here is a brief summary of the changes -

• Vehicle Excise Duty - road tax on gaz guzzlers is set to rise by 30% to a level of £300. In April 2008, the cost for band G vehicles will rise to £400. Duty on the most efficient vehicles will drop from £50 down to £35.
• Fuel Prices - fuel duty to rise by 2p per litre, and by another 2p in 2008. In 2009, there will be an additional 1.8p rise.
• Diesel/Petrol Equalising - diesel vehicle road tax will no longer be higher than petrol vehicles - the chancellor has raised the diesel vehicle rate by £5 and now petrol vehicles vehicles are also at the same level.

• A - less than 100g/km of CO2 - zero road tax
• B - 101-120g/km - road tax rate reduced to £35
• C - 121-150g/km - higher rate of road tax at £115
• D - 151-165g/km - higher rate of road tax at £140
• E - 166-185g/km - higher rate of road tax at £165
• F - 186-225g/km - higher rate of road tax at £205
• G - 225+g/km - road tax raised to £300

Mr Brown wishes to cut carbon emissions to below 100g/km after 2012 and has announced a review to be run by Professor Julia King. She will work with Sir Nicholas Stern.

Fuel duty raised will top £25 billion in 2008. Road tax will raise a further £5.6 billion. The AA has said that Britain's position as the leading taxer of motorists will be enhanced by this Budget.

As analysts continue to examine the effects of the Budget, one leading finance company has warned that the chancellor seems intent upon hitting at employees of companies who are paid around 40p per mile when they use their own cars. Presently, this payment is made regardless of the size of car or CO2 production. It is leading to employees buying larger cars than they would normally do. This 'advantage' looks set to be stopped or strongly deterred by taxation methods.

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