Budget: The effects on bikes

Gordon Brown’s new Budget includes massive tax increases for some car owners – with many facing bills of up to £400 per year from 2008 – but bikes have escaped with only minor increases.

The lowest tax bracket, for bikes under 150cc, has been frozen for a year, so a year’s tax will remain just £15. All other brackets will be raised by only £1 or £2. The maximum rate will now be £64 per year for bikes over 600cc.

Tax on fuel is set to increase by 2p per litre in October this year, with another 2p added in 2008 and a further 1.84p in 2009.