Last week the UK Government announced its Autumn Budget, putting the spotlight on various issues affecting the automotive industry which it sees as priorities
Petrol and diesel vehicle drivers will benefit from an extension of the fuel duty freeze. The Government confirmed that the 5p per litre cut will remain in place until March 2026, saving the average driver £59.
A new initiative was also announced to introduce fuel price transparency through a new open data scheme called “Fuel Finder”. By late 2025, fuel stations will be required to report any price changes or fuel shortages within thirty minutes of any changes, giving drivers more visibility over fuel costs.
The Government’s Budget also introduced additional incentives for EV buyers. Electric vehicles are set to retain their Benefit in Kind (BiK) tax rates for company car drivers, and the Vehicle Excise Duty (VED) rates are being adjusted to further promote low-emission vehicles.
The VED for low-emission vehicles will remain minimal for the first year at £10. For Hybrids, vehicles emitting 1-50g of CO2 per km will pay a first-year rate of £110, while those emitting 51-75g/km will pay £130.
ICE vehicles will continue to pay the most in Vehicle Duty Excise, with cars emitting over 76g/km having their rates double in 2025-2026, making traditional fuel-powered cars more costly to run.
The Budget also revealed a £200 million investment into EV charging infrastructure, which will include providing funds for local authorities to install on-street chargers. A key factor which deters drivers from purchasing an EV is the lack of convenient public charging infrastructure, so the investment will be a positive step in removing a significant barrier to the transition.
Another investment pledge is an additional £500 million to repair UK roads. Starting next year, the sum equates to an additional £180 million more than originally predicted. The investment aligns with Labour’s manifesto pledge to fix one million potholes a year – a promise all motorists will welcome if delivered.
Whether incentivising EV uptake or pledging to reduce the number of potholes, many drivers will welcome the changes, but ICE car drivers will be paying more overall despite the fuel duty freeze.
Potholes alone account for thousands of breakdowns – and potentially accidents too – annually, but fixing the UK’s roads could take years. AX can respond rapidly, providing a like-for-like replacement vehicle and carrying out approved repairs while ensuring the process is managed as efficiently as possible, regardless of whether the vehicle is an EV or ICE car.
Previous
