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Budget 2005 Summary
Investing for our future:
Fairness and opportunity for Britain's hard-working families
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Protecting the environment

The Government believes that economic prosperity must be achieved while protecting the environment to ensure a better quality of life for current and future generations. It is committed to tackling global problems, such as climate change, and to improving the local environment in the UK's towns, cities and rural areas. The Government is also committed to promoting an efficient and environmentally sustainable transport system. Budget 2005 announces:

  • further action on climate change, including new fiscal incentives, an energy services summit and a new energy efficiency theme as part of the Government's Invest to Save budget;
  • an increase, in line with inflation, of fuel duty rates, from 1 September 2005, alongside an increase in duty on rebated oils to reduce fraud; and the standard £5 increase in Vehicle Excise Duty for larger and more polluting cars, with the rate for smaller cars frozen;
  • a freeze in the threshold for the minimum percentage charge rate of company car tax, and simplifications to the company car tax system; and
  • a freeze in the climate change levy, the aggregates levy and air passenger duty.

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