Budget 2024 wasn’t quite as end of the world as it was supposed to be for car owners, unless they are buying a brand petrol or diesel. Chancellor Colonel Rachel Klebb as Free Car mag has christened her. Still bad enough, but let’s have a look at some of the details.

Fuel Duty

Fuel duty will not increase for at least another year, and confirmed that the existing 5p cut in duty (brought in by the previous Conservative Government in 2022) will remain in place.Reeves said “I have concluded that in these difficult circumstances while the cost of living remains high and with a backdrop of global uncertainty increasing fuel duty next year would be the wrong choice for working people.”

Road Tax (VED)

There are some scary road tax rises from 1st April 2025. According to the Government, the measures have been designed to “strengthen incentives to purchase zero emission and electric cars” by “widening the differentials between zero emission, hybrid and internal combustion engine (ICE) cars”.

There is a ten-fold increase in first-year car tax rates for cars emitting between 1-50g/km of CO2, which includes hybrids. These will increase from the current rate of £10 for petrol and diesel cars (or zero for hybrids) to £110.

Rates for new cars emitting between 51-75g/km of CO2 will increase from £30 (or £20 for hybrids) to £135.

Standard VED rates for beyond the first year will rise in line with the Retail Price Index (RPI). The Government will “consider raising” the threshold for the current Expensive Car Supplement for electric cars “only at a future fiscal event”. Currently cars of any type costing over £40,000 when new are liable for an extra £410 a year VED charge for five years after registration.

Not only that tax rates for company cars will be maintained at 2% until 2026. Double-cab pick-ups will also be treated as cars for capital allowances, Benefit-in-Kind taxation and deduction from business profits from April next year.

Potholes and Electricity Cars

The Chancellor has announced a £500 million increase in road maintenance funding from April 2025.

£200 million will also be set aside to buy EV chargers. However no measures will be introduced to help accelerate the take-up of electric cars for private buyers.

£2 billion has been confirmed to support the automotive sector to “support our electric vehicle industry and develop our manufacturing base”.

Pump Watch

The Government will also introduce a ‘Pump Watch’ mandatory fuel price publication and monitoring scheme from the end of 2025.

What do you think?

Not quite as terrifying for us as expected? There are of course 5 more years of this sort of thing, so it is a start. Let us know through the normal channels.