Autumn Budget 2025: Key Updates Every Driver Needs To Know

How the latest government announcements could influence the cost of running, buying, and maintaining your vehicle

The Autumn Budget has always been a major moment for UK motorists, and this year’s announcement from Chancellor Rachel Reeves is one of the most significant in recent memory. With financial pressure on households still high—and the Treasury searching for new ways to plug budget gaps—the decisions made around motoring tax, EV incentives, and road funding will directly affect drivers across the country.

From fuel duty to electric vehicle road pricing, here’s a simple breakdown of what was announced and what each change could mean for your wallet.

Fuel Duty: Freeze Extended Once Again

Fuel duty has been locked in place for more than a decade, and the Chancellor has confirmed the current 5p-per-litre reduction will remain until at least September 2026. While this price freeze continues to cost the Treasury billions, ministers have held back from raising duty due to its immediate impact on workers who rely on their vehicles every day.

Keeping the freeze gives drivers breathing room. If the 5p cut had been reversed, the typical motorist would likely be paying £60–£80 more per year on fuel. That’s a meaningful saving for those already stretching their budgets.

Electric Vehicle Incentives: More Support Announced

In an effort to keep the UK’s electric transition moving, the government has confirmed a new wave of funding for EV buyers and infrastructure. Reeves announced:

• £1.3 billion in additional funding for the Electric Car Grant, extended to 2030
  
• £200 million to speed up national EV charger installation
  
• £100 million for home and workplace charging upgrades
  
• 100% business rate relief for companies installing workplace charge points
  

If you’re considering an EV, the Budget has strengthened the case. Better charger availability should reduce waiting times and help those without driveways. Grants and commercial incentives soften the upfront cost, making the switch more attractive.

EV Road Pricing: Pay-Per-Mile Charges Confirmed

A major development—and one likely to stir debate—is the introduction of a new Electric Vehicle Excise Duty (eVED). With electric cars no longer contributing to fuel duty, the government is preparing a long-term tax replacement.

Starting April 2028, drivers will pay:

• 3p per mile for fully electric vehicles
  
• 1.5p per mile for plug-in hybrids
  
• Funds raised from eVED will be ring-fenced for road maintenance.
  

Running an EV will no longer be “tax-free”. How much extra you pay will depend entirely on your mileage. Hybrid drivers will face a smaller charge, but the biggest question remains: how will mileage be monitored and enforced?

Expensive Car Supplement: Threshold Raised to £50,000

The Expensive Car Supplement—an additional VED charge applied in years 2–6 of ownership—will now only apply to electric vehicles costing over £50,000. The previous threshold of £40,000 no longer reflected rising prices or inflation.

The change is being backdated to April 2025, protecting buyers of eligible new EVs purchased this year.

More electric cars will now fall outside the premium tax band, reducing ownership costs. As many EVs are still priced above their petrol and diesel equivalents, this shift offers meaningful savings for future buyers.

Vehicle Excise Duty: No New Adjustments

There were no fresh announcements on VED this year. Last year’s changes—particularly the adjustments to first-year rates for high-emission vehicles—remain in effect. EVs also continue to pay VED from this year onwards.

If you’re buying a new petrol or diesel vehicle, expect the long-term trend of higher first-year rates for higher-emission cars to continue. While EVs are no longer exempt, they still may remain comparatively cheaper to tax.

Pothole Funding: Billions Allocated for Repairs

UK drivers have been battling poorly maintained roads for years, and the government has framed this Budget as a long-term fix. The national pothole backlog now exceeds £17 billion, with councils stretched thin.

Through revenue generated by the new eVED tax, the government plans to invest over £2 billion annually by 2029–2030 into resurfacing and repairing local roads.

In the short term: expect more roadworks, diversions, and delays.

In the long term: if funding remains consistent, drivers could see fewer suspension issues, tyre blowouts, and costly repair bills caused by neglected roads.

Company Car Tax & Salary-Sacrifice Schemes

Rumours suggested major changes were coming to employee car ownership schemes (ECOS). These schemes allow employees to use vehicles for a short period at advantageous rates and form a key pipeline for nearly-new cars entering the used market.

While the government originally planned to incorporate ECOS into Benefit-in-Kind (BIK) taxation from April 2026, this has now been postponed to April 2030.

No immediate changes—and that’s positive. Any sudden reform would likely have raised costs considerably.

Fuel Finder: Real-Time Pump Price Tool Coming in 2025

The Fuel Finder scheme is still scheduled to launch by the end of 2025, offering drivers transparent, live pump-price data from every participating fuel station.

This system is designed to expose unfair price gaps and help motorists shop around more easily.

Fuel costs should become more transparent, helping you avoid overpaying—especially in areas where prices vary dramatically between stations.

Final Thoughts

This year’s Autumn Budget brings a mix of short-term relief and long-term structural change. Fuel duty freezes offer immediate savings, while EV drivers will need to prepare for the upcoming pay-per-mile system. More incentives for electric vehicles and substantial road-repair investment show a push toward modernising the UK’s motoring future.

At Find and Finance, we’ll continue breaking down how policy changes impact running costs, vehicle affordability, and overall ownership experience—so you can make confident decisions when choosing your next car, commercial vehicle, or prestige model.

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