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Friedrich Merz to ask for series of exemptions in attempt to protect crisis-hit automotive industry The German chancellor, Friedrich Merz, is to urge the EU to soften the 2035 cutoff date for the sale of combustion-engine cars. Merz said he would send a letter to the European Commission president, Ursula von der Leyen, on Friday urging Brussels to keep technological options open for carmakers. The sale of new petrol and diesel cars in the EU is scheduled to be banned in a decade’s time . Continue reading...

How will new tax rates and measures affect pensions, savings, car tax and more? We look into some individual queries From new tax rates on savings, to a pay-per-mile scheme for electric vehicles, via changes to pension contribution rules – this week’s budget included measures that will have an impact on household finances. Here are some of the questions people wanted the Guardian to answer after Rachel Reeves sat down: Continue reading...

Businesses grumble about lack of ambition and urgency as Rachel Reeves continues to shy away from meaningful tax reform Where was the applause for the budget from the business world? Well, there was the banking sector, but it was reportedly under strong encouragement from the Treasury to engage in a round of corporate cheerleading after being spared higher levies. Nor should one get carried away by JP Morgan’s coordinated announcement of a new £3bn office in Canary Wharf . Yes, the commitment shows some level of long-term confidence in the UK, but large international banks do not make property decisions on the basis of what they heard one afternoon. In the non-banking business world, the broad day-after reaction to the budget can be summarised as a resigned shrug coupled with amazement that the chancellor, Rachel Reeves, offered so few pro-growth measures even as the Office for Budget Responsibility set out two depressing forecasts. First, that the average growth rate for the economy...

Taxing EVs on the amount of electricity they use is fairer than the per-mile system outlined in the budget, writes Edward Leigh , while David Abrams reckons EV owners are being penalised for trying to do the right thing The announcement in the budget of the introduction of a per-mile tax on electric vehicles is an important start to reforming vehicle taxation to be fairer ( Report, 26 November ). But it is only the first step towards making it an effective tool to reduce traffic congestion and carbon emissions. I provided written and oral evidence to the 2021 Commons transport committee’s inquiry into road pricing and have led a focus group on how it could be made acceptable to the public. Although a per-mile charge is relatively simple to administer, taxes on fuel are fairer because they vary with the weight and efficiency of the vehicle. These are relevant because they determine external costs, such as the rate of road wear, severity of harm caused in collisions, and carbon emissi...

As they struggle with the cost of living, people weigh up whether Rachel Reeves’s measures will help them What the budget means for people on a range of incomes Budget calculator: find out if you are better or worse off For Brett and Maria MacDonald, the cost of living has been biting this year, from rising mortgage payments to childcare fees. Living in London with two young children and no extended family nearby, the pair are juggling work with parenting. Continue reading...

Chancellor says she will not ‘get into semantics’ when questioned on issue after her statement At a glance: the key points from the budget How does freezing income tax thresholds affect you? Paul Nowak , the TUC general secretary, has rejected the concerns raised by the Resolution Foundation (see 9.54am ) about the rise in the minimum wage rates. Asked about the thinktank’s comments, Nowak told Times Radio: I don’t accept those concerns ... First of all, that recommendation is based on the Low Pay Commission, which brings together employers, unions, independent experts, they’re tasked with making a recommendation on the minimum wage, which balances getting money into people’s pockets and the impact on unemployment. Continue reading...

Rishi Sunak’s ‘temporary’ 5p-a-litre cut to be reversed in stages from next September in effort to keep EVs attractive Budget 2025 – live updates Fuel duty will be frozen again, but only for five months until September 2026, the chancellor has announced, as she confirmed a new 3p-a-mile charge for electric cars from 2028. Rachel Reeves will freeze fuel duty in April at 52.95p a litre for petrol and diesel, a 16th successive year without a rise, but the so-called “temporary” 5p cut introduced by Rishi Sunak will be reversed in stages from September. Continue reading...