New VED rates
R Russell
Back in March 2008 the Chancellor announced new bands and rates of VED that would lift the renewal cost for most cars by a fiver from 1st April 2009. The legislation was ignored because normally there would be another budget before the changes were due to take effect. Traditionally the VED legislation is dealt with on the day after the budget. Meanwhile the motor industry and DVLA went about preparing for the changes. Some holiday plans may have been upset when it emerged that this year's budget was to be far later than usual on 22nd April 2009, but there are some unforeseen consequences emerging.
At the end of February Treasury informed the DVLA that the VED changes due to take effect on 1st April will now happen on 1st May. This gives government the time to enact the required legislation, rather than an opportunity to make changes. Having been caught out by the late budget this time, it is also likely that they will be better prepared in future.
So the £5 VED increases are delayed for one month, but anyone who spent time preparing for price changes in April and the new A to M banding structure has jumped the gun.
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