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The autumn budget was delivered in the houses of parliament today, and Chancellor Rachel Reeves has announced multiple new policies which will impact you.

Despite rumours of a fuel duty increase, it鈥檚 been frozen for another year. Reeves has also pledged 拢500 million to go towards fixing potholes, as well as a 拢200 million investment in public EV chargers.

Fuel duty frozen for another year

Despite strong rumours that fuel duty would rise by up to 7 pence-per-litre in the autumn budget, Rachel Reeves has today confirmed that it鈥檒l remain frozen for a further 12 months. The 5 pence-per-litre discount has also been extended for a year.

Fuel duty has been frozen at 57.95 pence per litre since 2011, and the 5 pence-per litre discount has been in place since 2022 bringing it down to 52.95 pence. Reeves said in her statement that increasing the rate wouldn鈥檛 be the right thing to do for working people, despite the fact it could raise up to 拢3 billion per year.

It also represents a saving of 拢59 per year on average for drivers. Not enough to go mad, but every little helps.

Incentives for electric car buyers and increases in tax rates

The government was under growing pressure from the motor trade to do more to support the uptake of electric cars. The SMMT called for VAT rates on EVs to be cut in half, as well as drastically lower the tax rates on home charging. It also wanted EVs to be exempt from the 拢40,000 鈥�luxury car鈥� tax levy.

In her budget announcement, Reeves confirmed that EVs will retain their favourable Benefit in Kind tax rates for company car drivers. While they鈥檙e no longer exempt from vehicle excise duty from April 2025, electric cars will be subject to more favourable first-year tax rates than petrol and diesel powered cars.

Zero-emission vehicles will pay 拢10 for the first year, while cars emitting less than 50 g/km of CO2 will pay 拢110. This is up from 拢10 currently and it includes hybrids, which previously paid 拢0. All cars emitting 50-70g/km of CO2 now pay an extra 拢100 in the first year, taking it to 拢130. All cars emitting over 75g/gm of CO2 will see their first-year tax rates double.

拢200 million investment in EV charging

Public charging is one of the biggest things putting people off buying an electric car, and Rachel Reeves has pledged a further 拢200 million for EV charging infrastructure.

This includes giving money to local authorities to install on-street chargers, which could be instrumental to increasing EV uptake amongst people who don鈥檛 have access to off-street parking.

No targets were set out in the budget stating how many new charging points would be installed, however the government is targeting 300,000 stations across the country by 2030. There are currently over 70,000.

拢500 million to fix potholes

Good news for those of you who are sick of dodging potholes all the time, because the government has pledged an additional 拢500 million to repair our roads from next year.

This is 拢180 million more than initially thought, and is in keeping with Labour鈥檚 manifesto pledge to repair 1 million potholes a year. It was thought that 拢320 million would be invested, with the funds coming from the deferred A27 bypass scheme in West Sussex 鈥� a project About deemed to be of 鈥減oor value鈥�.

Potholes have been a hot topic in previous budgets as well, with Conservative chancellor Jeremy Hunt pledging 拢200 million to this cause in the 2023 spring budget.

Autumn budget 2024 verdict

Commenting on the 2024 Budget, Iain Reid, head of editorial at 莲花直播 said:

鈥淭here were a couple of surprises that we鈥檙e glad to hear in the Chancellor鈥檚 Budget. The freeze on fuel duty was unexpected and is of course good news for drivers. Given that for so many of us the car is an essential part of our lives, any increase in fuel prices would have been unwelcome.

鈥淭he Chancellor said she wants to incentivise the take up of electric cars. She confirmed that EVs will retain their favourable Benefit in Kind tax rates for company car drivers. And while they鈥檙e no longer exempt from vehicle excise duty from April 2025, electric cars will be subject to more favourable first-year tax rates than petrol and diesel powered cars.

鈥淗owever rather than incentivising electric car ownership, it looks like she is disincentivising ownership of other types with big increases in VED rates and a big increase in Benefit in Kind for hybrid cars coming in 2028.

鈥淭he Government is introducing a requirement for all UK retail petrol-filling stations to report prices and the unavailability of fuel within 30 minutes of a change. This should make it easier for consumers to find in real time the cheapest fuel in their area but it鈥檚 just a shame that it looks like it will take a year to put into place.

鈥淲hile an extra 拢500million to help deal with potholes is welcome, it鈥檚 not going to fix the problem overnight though!鈥�

It was a mixed response from the Society for Motor Manufacturers and Traders (SMMT), with chief executive Mike Hawes welcoming the tax benefits on electric cars, but he says that more needs to be done to incentivise people to buy EVs.

In a statement he said: 鈥淎 strong manufacturing sector depends on a strong market. The lack of substantive measures to support the new car market 鈥� in particular for electrified vehicles 鈥� is hugely disappointing.

鈥淲e welcome the extension of the Plug-in Van Grant and company car tax benefits, but these alone cannot drive the growth in demand needed. With the sector challenged to deliver the world鈥檚 most ambitious EV transition targets, achievement of those targets is in serious doubt.

鈥淭here must be an urgent review of the market and regulation, else the cost will soon be felt in reduced UK investment, economic growth and jobs.鈥�

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