How the UK Autumn Budget 2024 Can Affect Your Motoring

The UK Autumn Budget 2024 is set to bring significant changes that could impact motorists across the country. With the government looking to address budget deficits and promote sustainable transport, several key areas are likely to be affected. Here’s a breakdown of what to expect and how it might influence your motoring experience. 

Fuel Duty Changes 

One of the most anticipated changes is the potential removal of the 5p per litre discount on fuel duty. This discount was introduced in 2022 to assist consumers during the cost-of-living crisis and other geo-political issues. Its removal will result in an increase in the average price per litre of fuel For the average driver, this could mean an annual increase in the cost of fuel of around £43 for petrol cars and £39 for diesel cars. 

Road Pricing and Vehicle Excise Duty (VED) 

As more drivers move to electric vehicles, the government is seeing revenue from VED erode, since electric vehicles are charged VED at a lower rate. To replace this the introduction of road pricing is being considered.  This means that drivers could face charges based on the distance they travel. This could be particularly impactful for those who frequently drive long distances. . 

Impact on Electric Vehicles 

From April 2025, owners of electric vehicles will no longer be exempt from car tax. While this is anticipated to be lower than for traditionally fuelled vehicles, it is part of a broader strategy to ensure that all road users contribute to the maintenance of the road network. The budget may however, include further incentives to make EVs more affordable, such as grants and subsidies. 

Company Car Tax (BIK) 

Benefit In Kind (BIK) rates for company cars are also expected to rise, affecting those employees who use their company car for personal travel, potentially making it a more expensive option. The government also aims to adjusting these rates to encourage the use of low-emission vehicles. 

Environmental and Public Transport Investments 

The budget is likely to include increased investments in public transport and infrastructure to support sustainable travel, potentially providing more funding for electric buses, cycling lanes, and improvements to the rail network. These investments are part of government’s commitment to reducing carbon emissions and promoting greener alternatives. 

Conclusion 

The UK Autumn Budget 2024 is poised to bring several changes that will affect motorists. From potential increases in fuel duty and the introduction of road pricing to adjustments in EV taxes and company car rates, these measures aim to balance the budget while promoting sustainable transport. As always, staying informed and planning ahead can help you to navigate these changes more effectively.