Spring Statement 2025: key news for motorists

The UK Chancellor, Rachel Reeves, has revealed the Government’s latest update on the economy, public finances, and spending plans in the Spring Statement, which is an update to the 2024 Autumn Budget statement.
There weren’t many major updates for motorists, but we did spot the following investment commitments: • Infrastructure investment to the tune of £4.8 billion allocated to the Strategic Road Network (which looks after our motorways and major A roads) for 2025-26. • A record £1.3 billion has been marked for road renewals and £1.6 billion for local road maintenance. • Labour also announced ongoing support for initiatives like the West Yorkshire Mass Transit system. • Further regional growth announcements are expected throughout the year, especially at the Spending Review.

The Spring Statement confirms previous announcements on Vehicle Excise Duty (VED):
• Electric vehicle exemptions end in April 2025, but electric owners will pay just £10 annually until 2029-30. • Hybrids, petrol and diesel costs are set to increase for many models. Keep up to date on tax bands here.

• The low BIK rate for electric vehicles remains, gradually increasing from 5% to 9% by 2029-30 to encourage electric adoption.
• Company car tax rates for hybrids, petrol and diesel will increase from 2028-29. • Double-cab pick-ups are going to be reclassified as cars, leading to higher BIK rates, though HMRC has said that if you buy, finance or lease a pick-up truck before the deadlines above then the old rules and rates apply.

Fuel duty remains frozen and maintains the 5p cut from 2022, which was introduced to counter rising fuel prices after Russia’s invasion of Ukraine.
Fuel duty is tax paid on fuel used to run your cars or to heat your home. It is automatically added to the price you pay for fuel each time you refuel your car. The fuel duty cut was first introduced in 2022 by Rishi Sunak to help with the cost of living crisis.

In other news, the Government announced additional funding for pothole repairs. The total budget for road repairs has increased to £8.3 billion, but experts estimate it would take £17 billion and ten years to fully repair UK roads, so let’s not get too excited. To keep that work on track, local councils are now expected to report their progress in order to keep their share of the pothole repair fund.
The Government has also confirmed approval for the Lower Thames Crossing, a major new road infrastructure project that’s expected to reduce congestion by removing 13 million vehicles annually from the Dartford Crossing. The 14.5-mile road will link the A2/M2 in Kent with the M25 in Essex. This will include 2.6-mile-long twin tunnels, the longest of their kind in the UK. Construction will start in 2025, with completion expected by 2032.

From starting your research to rolling your car onto the drive, we're here to make the car-buying process seamless.
Browse a great range of brand new cars at Auto Trader.