Alastair Darling’s 2009 Budget saw an increase in fuel duty by 2p per litre from September and 1p per litre above inflation each year from 2010 to 2013. An increase in fuel duty is always frustrating for motorists but unsurprising given the extent of government debt and committments to cut carbon emissions.

Also announced was the introduction of a car scrappage scheme, similar to what has previously been adopted in France and Germany. From May 2009 to March 2010 you will be able to trade-in your old car for a guaranteed value of £2,000. To qualify, your car must be at least 10 years old and you must have been the registered owner of that car for at least 12 months. The aim is to help boost new car sales to support car industry during the recession. There could also be a modest benefit for the environment with newer cars tending to be more fuel efficient.

Are you going to benefit from the car scrappage scheme? How do you feel about the increase in fuel duty? As always, your thoughts are welcome. For more details on the 2009 Budget, check out the BBC website.

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