Chancellor Rachel Reeves will unveil the highly anticipated Autumn Budget later this afternoon, with drivers expected to be impacted by a number of new measures.
From 12.30pm, the Chancellor will begin speaking at the Despatch Box in Parliament and outline the Government’s spending plans as it battles against a funding black hole.
Experts have pointed to several measures that could be introduced or scrapped by the Government, including changes to fuel duty, new car tax regulations, and even adjustments to VAT rules.
GB News has rounded up all of the possible changes that could arise for motorists in Rachel Reeves’ Budget later today.
Pay-per-mile
Reports have suggested that the Chancellor could launch a new road pricing scheme for electric car owners, with drivers expected to face a charge of three pence per mile.
While estimates vary, the average motorist could be slapped with an additional £300 charge every year, once it is introduced in 2028 following a consultation.
The rollout of any potential changes has been slammed for a lack of clarity for motorists, especially after the Transport Secretary appeared to rule out a “national pay-per-mile scheme”.
This was walked back just hours later, with sources claiming that Heidi Alexander MP “misspoke” and intended to rule out a “national road pricing system”.
Chancellor Rachel Reeves could introduce a number of changes for motorists later today
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GETTY/PA
Fuel duty
More than 152,000 drivers have signed a petition calling on the Government to maintain the rate of fuel duty, or even cut it, in the Budget, as petrol and diesel car owners face the pressure of fluctuating fuel prices.
In a surprise move last year, the Chancellor announced an extension to the 5p freeze until 2026. This was first introduced under the previous Conservative administration after the Russian invasion of Ukraine sent global oil costs spiralling.
However, in a bid to raise revenue for the Government, Chancellor Rachel Reeves could target fuel duty, in addition to new taxes for electric vehicle drivers.
Some transport organisations have called for the Budget to hike the rate of fuel duty in line with inflation, which would inevitably send petrol and diesel prices higher. This would be the first hike in 14 years.
Car tax
In keeping with tradition, the Government is expected to allow Vehicle Excise Duty taxes to rise in line with inflation in the new financial year next year.
This would likely hike most car taxes, including the standard rate, first year rates and even the Expensive Car Supplement.
For the majority of drivers, this would result in a small increase in costs, while some could end up paying hundreds of pounds extra.
Someone buying a new, highly-polluting vehicle could find themselves forking out hundreds of pounds more in first year rates, especially if it costs over £40,000.
More than 40 models are eligible for Labour’s Electric Car Grant
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ALPINE/JAECOO/RENAULT/NISSANElectric cars
Rachel Reeves is expected to unveil a huge £1.5billion funding boost for electric vehicles, as well as those looking to switch to cleaner cars.
Around £1.3billion is expected to go towards the Government’s Electric Car Grant, which is already backed by £650million in funding.
Drivers can choose from more than 40 of the most popular electric vehicle models on the market, with a maximum saving of £3,750 if the car costs less than £37,000.
The remaining £200million is likely to be funnelled to the installation of electric car chargers around the country, to add to the 86,000 chargers already operational.