Chancellor of the Exchequer George Osborne has this week announced the annual Budget in Westminster, with several significant measures being introduced that will impact fleet operators up and down the country in the months and years ahead.

Mr Osborne was expected to deliver a Budget with one eye on boosting confidence in the government ahead of the upcoming general election that is now just a few short months away, and this is partially what he did, although there is now cross-party agreement that many of the measures being introduced will produce lasting benefits for many sections of the nation.

It was not all positive news for fleet managers though, as the chancellor can giveth, but he can also taketh away.

Freeze on fuel duty

One of the most pressing issues for many members of the public and fleet managers across the country has been the high cost of petrol and diesel in recent years and the chancellor stated further measures are now being introduced to offset this issue for UK road users.

A planned increase in fuel duty that had been set to come into force from September has been scrapped. Should this freeze continue into 2016, it will represent a hold on fuel duty increases for a full five years – the longest freeze in duty rises in more than the last two decades.

This decision is expected to be of great benefit to motorists and vehicle operators across the UK, with the average car owner forecast to make annual savings of £675 as a result of the move, while the savings enjoyed by small businesses and UK freight operators are expected to be much larger, at £1,400 and £21,000 respectively.

Increase in vehicle excise duty

The chancellor also announced vehicle excise duty for models registered in the UK either on or after March 1st 2001 are to witness an increase in taxation this year.

However, the majority of excise charges for cars in the UK have been held at the same level as last year's Budget, most notably for models with the lowest level of CO2 emissions.

Changes to benefit-in-kind

Businesses up and down the country will also be interested in changes announced relating to company car benefit-in-kind tax, which the government has announced will now increase by three per cent in 2019-20.

Making the announcement, Mr Osborne stated: "To encourage a new generation of low emission vehicles, we will increase their company car tax more slowly than previously planned, while increasing other rates by three per cent in 2019-20."

This means that vehicles rated in the zero to 50 g/km of CO2 output category will become less expensive to operate relative to models with lesser green credentials in the years ahead.

Indeed, with binding EU commitments to bring down the nation's CO2 output in the coming years, a focus on reducing emissions within the UK transport sector is a must.

Clarification on capital allowances

Mr Osborne made clear in this year's Budget that a previous commitment set out in 2014 will now be amended to come in line with the rest of the EU.

The government confirmed in 2014 an extension of the enhanced capital allowances for zero emission goods vehicles to March 31st 2018.

However, to ensure the UK remains in line with EU mandates, the availability of this allowance is now limited to businesses that do not claim the government's Plug-in Van grant.

Impact of driverless cars

One area where the government is keen to see considerable action in the coming years is the delivery of the nation's first driverless cars on public roads.

It is hoped that the rollout of this technology will serve to not only help to reduce road traffic accident rates in the years ahead, but also have a positive impact on issues like congestion and growing vehicle numbers.

As such, the chancellor has committed a £100 million investment into ongoing research and development towards the proliferation of these vehicles, with the money to help fund the creation and implementation of associated technologies to make driverless cars a reality.

Reduced tolls for Severn River Crossing

Finally, Mr Osborne revealed drivers utilising the Severn River Crossing will be able to do so at a lower cost from 2018, once the structure passes into public ownership.

He revealed the government plans to abolish all Category 2 tolls for the bridge (small goods vehicles and small buses) and include these vehicles in the Category 1 fares structure.

Furthermore, VAT on charges for all crossing users will be abolished, passing on savings to all travellers in the years ahead.