In her first budget as Chancellor, Rachel Reeves has delivered big news for drivers: fuel duty will remain frozen, and the temporary 5p cut in fuel duty stays for another year.
Reeves explained to Parliament that, given the high cost of living and global uncertainty, raising fuel duty would be “the wrong choice for working people.” This decision comes even as she aims to increase taxes overall by £40 billion to restore "economic stability and turn the page on 14 years.”
Additionally, company-car tax incentives will stay in place until at least 2028, and new road tax rules will increase the gap between fully electric vehicles and other types, adding an expected £400 million in revenue.
Drivers had urged the government to prioritise fixing Britain’s deteriorating roads over pushing fuel taxes higher. While Transport Secretary Louise Haigh promised £8.3 billion from the scrapped HS2 project to repair roads, Reeves pledged only an additional £500 million next year to road maintenance. Still, she insists this will cover repairs for an extra million potholes each year.
Unfortunately, there were no announcements targeting the rise in car crime—a concern that nearly one-third of drivers ranked as a top priority in a recent survey.
