Few automotive industry announcements in 2026 Spring Statement

 This year’s Spring Statement focussed on responding to updates from the Office for Budget Responsibility (OBR) about economic forecasts, rather than providing any major announcements that would impact the automotive industry.

A positive result from the Statement is that inflation is projected to fall from 3.4% in 2025 to 2.3% in 2026, with expectations that it will fall again to 2% in 2027. The 2% inflation rate target is expected to be reached in late 2026, ahead of the predicted timeline set in the Autumn Budget. This will be benefit the automotive sector by containing rising costs.

However, the automotive industry has voiced concerns about the Statement’s lack of acknowledgment of key topics such as fuel duty and EV costs.

Last year’s Autumn Budget announced the extension of the 5p-per-litre fuel duty freeze until 31^st August 2026. However, the current Middle East conflict has seen calls for more action on fuel duty with evidence of panic buying among UK drivers.

Some voices in the sector were hoping that the Government would offer some additional support for EV drivers, following the decision in the Autumn Budget to introduce an EV mileage tax. Prior to the Spring Statement, a UK tax tribunal ruled that VAT on public EV chargers should be cut from 20% to 5% to encourage further EV uptake but this measure has so far not materialised.

The industry has reacted to the Spring Statement as a possible missed opportunity to provide reassurance to UK drivers on a number of areas following some significant announcements in November 2025.

Elsewhere, last week’s SMMT Electrified conference saw numerous OEM leaders showcase their stance on the UK’s approach to electrification, urging for the Government to bring forward the planned review of the ZEV mandate, currently set for 2027. The sector is also calling for closer collaboration between the Government and the automotive industry to make the transition to electric cars viable for drivers across the country.

At such a crucial stage of the UK’s electrification rollout, the Government may need offer more incentives to help hit its ZEV targets. Alignment between the automotive sectors is vital, including industry support services like accident management providers, ahead of the 2030 ban on new petrol and diesel cars.

Mass adoption of battery electric vehicle involves more than just developing the vehicles; all branches of the automotive industry must adapt. AX can provide end-to-end incident management services, for both ICE and EV drivers. AX and Motor Assist’s network of expert bodyshops is trained in all powertrain types, and will provide a like-for-like replacement vehicle when required, including EVs.

EValuate, the latest initiative from AX, can also assist those who are unsure about switching to an electric vehicle. For ICE drivers in need of a replacement vehicle, EValuate provides the opportunity to select an EV for an extended real-world experience, helping them to decide whether a permanent switch to an EV is viable for them.