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All the Budget Changes that Will Impact UK Motorists
The UK government expects fuel duty to generate £24.4 billion in 2025-26, reintroducing inflation-linked increases from April 2027 and adding a per-mile electric vehicle tax from 2028.
- Chancellor Rachel Reeves announced the end of the fuel duty freeze since 2011, raising the fuel duty headline rate of 52.95p per litre and increasing pump prices for petrol and diesel motorists across the UK.
- With revenue in mind, the Government says fuel duties underpin the decision to alter rates, with Treasury forecasts expecting �24.4 billion in 2025-26, about �850 per household.
- Extending taxation to electric vehicles, EV drivers will soon face a 3p per mile charge and PHEV drivers 1.5p, both rising annually with inflation, the Office for Budget Responsibility shows.
- The 5p per litre cut will be retained for now, which the RAC head of policy Simon Williams said saves motorists across the UK more than 3 a tank, but prices will rise in stages.
- After more than a decade of freeze, the fuel duty escalator policy cost the Government £120 billion and past attempts triggered major UK motorists protests in 2000.
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Total News Sources15
Leaning Left4Leaning Right2Center5Last UpdatedBias Distribution46% Center
Bias Distribution
- 46% of the sources are Center
46% Center
L 36%
C 46%
R 18%
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