- Electric vehicle pence-per-mile road charging introduced
- Called Electric Vehicle Excise Duty (eVED)
- 3 pence per mile for EVs, 1.5 pence per mile for plug-in hybrids
- Charged in addition to Vehicle Excise Duty (VED)
- No news yet on how this will be implemented but described as “self-reported”
- Says “no requirement to report where and when miles are driven or install trackers in cars”
- OBR has forecast fuel duty receipts will fall to around half current level by the 2030s in real terms
- Estimates the average motorist will pay £240 per year in eVED – around half ICE vehicle levels
- Fuel duty unfrozen
- Fuel duty on petrol and diesel unfrozen for the first time since 2010
- Takes effect from September 2026
- There’s a staggered reversal of the 5p cut starting with 1p from September 2026, followed by 2p in December 2026 and then 2p in March 2027
- From April 2027 onward, fuel duty will increase annually in line with inflation (RPI)
- Government says pump prices are at lowest level since 2021
- “Fuel finder” introduced
- Open data scheme where fuel retailers publish current prices
- Designed to help drivers identify cheapest local outlets
- Government figures say will save average motorist £40 per year
- Electric Car Grant extended
- Additional £1.3 billion made available
- Previous criteria maintained – two tiers at £1,500 and £3,750
- Expensive car supplement threshold increased
- The threshold for ECS will be raised from £40,000 to £50,000 for new zero-emission cars (EVs)
- Change takes effect from 1 April 2026
- Will apply to zero emissions vehicles registered from 1 April 2025 onwards
- Vehicle Excise Duty for cars, vans and motorcycles
- VED rates for cars, vans and motorcycles will rise in line with RPI from 1 April 2026
- PHEV benefit in kind easement
- The government will introduce a temporary benefit in kind tax easement for plug-in hybrid electric vehicles
- To prevent their tax charge increasing significantly due to new emissions standards
- Will apply from 1 January 2025 to 5 April 2028
- Changes to Employee Car Ownership schemes delayed
- Planned changes to company car schemes will now not take effect until 2031
- For those still in contracts at that time, “transitional arrangements will also be put in place to provide additional support”
- Other news
- An additional £100 million in EV charging infrastructure, on top of previously announced £400 million
- £100 million of funding for local authorities and public bodies to support the training and deployment of specialist staff, accelerating the rollout of public chargepoints
- Government will commit over £2 billion annually for local authorities to repair, renew, and fix potholes on their roads by 2029-30
- Consultation launched on permitted development rights for cross‑pavement EV charging
- 10-year 100% business rates relief for eligible EV chargepoints and EV-only forecourts
New team set up to tackle “egregious breaches of employment rights” – starting with hand car washes
