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What could the Autumn budget mean for motorists?

By Mathilda Bartholomew | October 29, 2024

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Fuel duty, road repairs, and potential changes to road tax: Here’s everything you can expect...

What could the Autumn budget mean for motorists?

The first budget since Labour’s election win is set for Wednesday, October 30, and it’s time to see how the new government plans to spend public funds over the next six months. For the millions of drivers in the UK, there’s a lot at stake. Rumours suggest potential hikes in fuel duty, talk of pay-per-mile road pricing, and a significant investment in road repairs. So, what’s in store for motorists?

Will fuel prices go up?

Fuel prices have been a hot-button issue for years. Since 2011, fuel duty has been frozen at 52.95 pence per litre, with a 5 pence-per-litre discount added in 2022 to help ease the strain of rising living costs. The previous chancellor extended this discount until April 2025, but now, with Labour in power, there’s talk that the discount may end, and annual inflation-based increases could be reinstated, raising the duty by up to seven pence per litre.

A crackdown on potholes

If dodging potholes is part of your daily routine, here’s some potentially good news: the new budget could bring significant funding to repair the UK’s roads. Labour has pledged to repair one million potholes, reallocating funds initially set for the A27 bypass project, which they deemed too costly. With previous efforts bringing in hundreds of millions, Reeves may commit even more to road repair in this budget.

Is road tax changing?

While vehicle excise duty (VED), commonly called road tax, typically rises in spring there have been rumours about changes coming in 2024 with some sources stating Labour might move toward a pay-per-mile system as early as this budget.

However, the Department for Transport has denied plans for any immediate rollout of pay-per-mile pricing. We believe this is because there is yet to be an accurate way of enforcing such a system, as you can read about here

Stay tuned for updates as details of the Autumn budget unfolds!

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