Driving law changes confirmed by Labour to save British motorists £300 a year

As part of these measures, the Government has confirmed that it will make higher tax-free mileage rates permanent.

It aims to increase support for nurses, care workers, self-employed builders and others who drive for work.

When delivering his speech in Parliament tomorrow, the Chancellor will lock in the 55p per mile rate for the first 10,000 business miles.

Chancellor John Healey will also increase the rate above 10,000 miles from 25p to 35p per mile.

It is estimated that this will support around three million employees and self-employed Britons who use their own vehicle for work.

The changes will allow workers relying on their vehicles to receive greater support with fuel costs, servicing and other motoring expenses.

Someone driving 6,000 business miles could save an additional £120 in tax savings every year.

Higher-mileage drivers doing around 15,000 business miles will receive up to £300 in additional tax savings.

Commenting on the changes, Prime Minister Andy Burnham said: “We are taking on the big challenges facing the country.

“But that doesn’t mean losing sight of the everyday problems that cost people money or simply aren’t fair.

“If you’re a nurse driving for work, a parent spending those precious first weeks with your new baby, or an unpaid carer picking up an extra shift, these changes will make life a little easier and put more money back in your pocket.”

Mr Burnham added that Labour would go further in Wednesday’s Budget to give families and businesses “the breathing space they need today”.

The Government also confirmed that it would extend parental pay to more than 150,000 additional parents per year, and remove import tariffs on more than 100 products.

To further address concerns from motorists, the Chancellor is expected to extend the 5p per litre freeze on the rate of fuel duty in the Budget.

The fuel duty freeze was first introduced in the aftermath of the Russian invasion of Ukraine when petrol and diesel prices soared to their highest level ever.

Earlier this month, diesel hit a new all-time high at more than £2 per litre, with millions of drivers continuing to face difficulties at the pumps.

A HMT spokesperson told GB News: “As has always been the case, decisions on tax are a matter for the Chancellor to set out at fiscal events, and we do not routinely comment on rumour, speculation or proposals.”