Motorists are being warned of new driving laws being introduced in the final month of the year that could see millions of Britons impacted.
In the weeks following the Chancellor’s Autumn Budget, motorists could find themselves at the mercy of new driving rules which could change how much they pay to stay on the road.
With new rules being introduced over the coming weeks, GB News has rounded up the most important driving law changes in December 2025 that could impact you.
Budget
Chancellor Rachel Reeves introduced a number of significant driving rules in the Autumn Budget, including new car tax schemes, an update to the rate of fuel duty and additional funding for electric cars.
Although the rules are set to be introduced in 2028, the Government could unveil more information about the incoming pay-per-mile tax. This will see electric car owners pay 3p per mile, while plug-in hybrid drivers will face a cost of 1.5p per mile.
Motorists could also see petrol and diesel prices stabilise in December, given the Chancellor’s decision to extend the 5p fuel duty freeze until September next year.
Electric car drivers could also benefit, despite the pay-per-mile changes, with a huge £200million boost for EV charger installations. A further £1.3billion will help thousands more drivers take advantage of the Electric Car Grant.
Motorists are being warned of new driving laws launching in December
|
GETTY/PA
Congestion Charge
Electric vehicle drivers will lose their Cleaner Vehicle Discount for London’s controversial Congestion Charge within weeks, under new rules to modernise the scheme, including hiking the daily cost for all drivers from a rate of £15 to £18.
From Christmas Day, the CVD will be discontinued, meaning all EV owners need to pay to enter the Congestion Charge, unless they benefit from another discount or exemption.
Transport for London has confirmed plans for a new discount scheme from January 2, 2026. Electric cars will receive a 25 per cent discount, while electric vans, HGVs and quadricycles will have a 50 per cent discount.
Car finance
The Financial Conduct Authority (FCA) outlined that it would extend its consultation deadline to December 12 on the “most efficient way to address the liabilities for those motor finance customers treated unfairly between 2007 and 2024”.
The regulator estimates that the redress scheme will cost around £8.2billion, with victims of the car finance scandal receiving around £700 per agreement.
Experts have revealed their expectations that the first redress payments could be issued over the coming months, with the FCA expected to announce another update soon.
Drivers could receive around £700 per agreement from the car finance scandal compensation scheme
|
PAHMRC
HM Revenue and Customs will begin charging employees with company cars at the new advisory fuel rates from December 1.
The rates are applied when employees need to be reimbursed for business travel in their company cars, or when employees must repay the cost of fuel used for private travel.
From December 1, 2025, drivers of electric vehicles who utilise home chargers will see the rate fall from eight pence per mile to seven pence.