Autumn Budget 2024: what does it mean for UK motorists?
Find out what the new Labour government's first Budget means for UK drivers.
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The 2024 autumn Budget has been announced by Labour Chancellor Rachel Reeves.
Here’s how it could affect Britain’s motorists.
Changes that affect drivers in the UK:
Fuel prices
Potholes
Company car tax
First-year road tax
Public electric charging infrastructure
Electric car manufacturing incentives
Fuel prices
The Chancellor has announced the freeze of fuel duty, with the existing 5p discount staying in place for 2025 and 2026, keeping fuel duty at 52.95p per litre for at least another two years.
This means the price of our petrol and diesel won't go up next year.
Had this risen, we could have seen an increase of 7p per litre, which the government has said would be 'the wrong thing to do for working people'.
Potholes
A £500 million budget has been announced to increase road maintenance next year and help combat the issue of potholes in the UK.
The government has pledged to fix one million potholes each year to improve the quality of the road network.
Reeves says these potholes are a 'reminder of our failure to invest as a nation' and has pledged to improve road quality in both towns and rural areas.
Company car tax
The Chancellor has kept the benefit-in-kind (BIK) tax rate the same for electric cars (2%) to help more drivers make the switch to EVs.
This incentive, designed to encourage drivers to take advantage of company car schemes, will remain in place as the UK heads towards its 2035 goal to have 100% of new car sales being fully electric.
First-year road tax
Up to now, electric cars have been exempt from road tax (aka Vehicle Excise Duty) for their first year following registration.
From 1 April 2025, this exemption will not apply, but EV drivers will still have favourable rates compared to the updated emissions-based banding released in the Budget:
First-year road tax based on CO2 emissions:
0g/km: £10
1-50g/km: £110
51-75g/km: £135
Any car with CO2 emissions of 75g/km and above will see first-year road tax double from its current rate
These increases apply to hybrids as well as petrol and diesel cars, and don't factor in the 'expensive car supplement' for cars over £40,000 brand new.
Public electric car charging infrastructure
A £200m injection into public electric car charging infrastructure was confirmed in the Budget, giving local authorities more money to install on-street EV chargers.
Electric car manufacturing incentives
The Chancellor has also committed more than £2 billion in funding for the automotive sector to invest in the 'electric vehicle industry and develop our manufacturing base'.
This will continue investments in EV manufacturing infrastructure, following recent developments such as the Tata Group's new battery plant plans near Bridgewater.