What's in store for 2023

Article by the RAC

After a turbulent 2022 with record fuel prices at forecourts, many drivers will wonder whether things will improve in 2023.

We look at what drivers can expect from a raft of Government policy changes across the country.

Fuel duty (April)

In the face of rising pump prices last March, Prime Minister Rishi Sunak announced a 5p a-litre fuel duty cut to run until Spring 2023. This meant duty was reduced from 57.95p to 52.95p. The RAC has led calls for the cut to remain in place, arguing that increasing it once again would result in higher costs for drivers and would impact inflation.

Possible changes: The duty cut was only intended to last for a year, which means as things stand, drivers can expect at least 5p a litre to be added back onto their fuel at the pumps come April 2023. This will also increase VAT slightly, which is charged on top. In addition, as highlighted by the Office for Budget Responsibility (OBR) in November, fuel duty is due to undergo its scheduled annual RPI rise, which means it may lead to further forecourt increases. The OBR estimates the cost of fuel could increase by 12p a litre if the Government does not change policy. All eyes will be on the Chancellor’s Spring Budget on 15th March 2023.

London ultra-low emission zone (ULEZ) expansion (August) Introduced in central London in April 2019, the scheme operates 24 hours a day, seven days a week and requires drivers of vehicles that are not compliant with its emissions standards to pay a daily charge of £12.50. In October 2021, the scheme was expanded to cover a much wider area up to the North and South Circular roads.

Changes: The Mayor announced that from 29th August 2023, the scheme would be further expanded to cover the entire Greater London area. Drivers can find out whether their vehicle is compliant by using TfL’s checker. Still, they should be aware that driving into the Greater London boundary area in a vehicle that does not meet ULEZ standards will mean they have to pay the charge. Failure to do so will result in a penalty charge notice of £160 being issued.

Parking Code of Practice Act to better regulate the private sector (end 2023)

Current: The implementation of the Parking (Code of Practice) Act 2019 – strongly campaigned for by the RAC – legislates for a code of practice and a single appeals system. Owing to challenges from the private parking sector, the introduction of the code has been delayed pending a review of the proposed cap on parking charge notices and the ban on debt recovery fees. Parking-Here.com – Swiss Cottage – have their own one2one appeal service.

Changes: The Government will publish an impact assessment and further consultation with a view to the new code going live by the end of 2023, subject to no further delays.

Alternative 1

All CitiRental cars are ULEZ compliant. If you need to drive in and out of the zone and your own car is not ULEZ compliant, rent from CitiRental for the day, week or longer. Put another way, that’s a saving of £12.50 per day.

Alternative 2

If you own a non-compliant car, why not lease an alternative from CitiRental by the month, year, or longer AND sell your own non-compliant car and turn it into cash? Word of warning. Do this quickly before everyone else gets the same idea which will depress the market in non-compliant cars.

Alternative 3

If you own a non-compliant car and don’t like the idea of spending £12.50 every time you use it, why not sell it in part exchange to our partners Kar Dok who will take your car and supply you with a great value ULEZ-compliant, fuel-efficient car of your choice. Call Kar Dok on 0207 722 5228 and say you read about them in our blog.

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