The UK Government’s Spring Statement, delivered on 3 March 2026, primarily served as an economic update, with the Chancellor reserving major new policy changes for the upcoming Autumn Budget. However, the statement and accompanying forecasts confirmed several critical transport-related measures:

Motoring and Road Tax

The government reaffirmed its commitment to phased increases in fuel duty while introducing new tax thresholds for electric vehicles (EVs)

• Fuel Duty Phasing: The 5p-per-litre fuel duty cut is extended until 31 August 2026. Following this, rates will increase by 1p in September 2026, 2p in December 2026, and 2p in March 2027 to return to pre-2022 levels.
• EV Luxury Tax Threshold: From 1 April 2026, the threshold for the “Expensive Car Supplement” (luxury tax) for zero-emission vehicles will increase from £40,000 to £50,000.
• Vehicle Excise Duty (VED): Standard road tax for cars registered after April 2017 will rise with inflation (RPI) from £195 to £200 on 1 April 2026.
• Benefit-in-Kind (BiK): Rates for electric company cars will rise from 3% to 4%starting 6 April 2026. 

Public Transport and Infrastructure Funding

While no massive new infrastructure projects were launched, the government highlighted existing long-term funding commitments and local grants. 

• Local Transport Grant (LTG): Local authorities (outside major city regions) will share £2.3 billion through the LTG for smaller cities, towns, and rural areas starting in 2026/27. This includes £900 million specifically for the North and Midlands to address historic underinvestment.
• Bus and Active Travel: The government reaffirmed £3 billion for bus services and £626 million for walking and cycling schemes through 2030.
• Rail Fares: Regulated rail fares have been frozen for 2026 to support households during the cost-of-living squeeze. 

Electric Vehicle Incentives

To support the transition to zero-emission driving, several incentive schemes remain active in 2026.

• Electric Car Grant (ECG): New for 2026, the ECG provides discounts of up to £3,750 (Band 1) or £1,500 (Band 2) for eligible EVs priced under £37,000 (with some exceptions up to £42,000).
• Manufacturer Schemes: Due to the complex government application process, several manufacturers like Dacia, GWM, and Jeep have introduced their own “EV Grants” of up to £3,750 to remain competitive. 

Upcoming Changes to Watch

• London Congestion Charge: The daily charge has increased to £18, and the 100% exemption for electric cars has officially ended (though Auto Pay users may receive a discount to £13.50).
• EV Pay-per-mile: Consultation continues on a proposed 3p-per-mile charge for EV drivers and 1.5p-per-mile for PHEVs, though implementation is not expected before April 2028. The AFP are working with our membership to get our voices heard and will  respond in full to the consultation.