UK Autumn Budget 2024: Everything drivers need to know

The UK Government has delivered their Autumn Budget statement, and we’ve got all the automotive updates you need from it.
From an extended fuel duty freeze to electric vehicle incentives, here’s everything you need to know.

In the Autumn Budget, the government state that they are “committed to phasing out new cars that rely solely on internal combustion engines by 2030 and that from 2035 all new cars and vans sold in the UK will be zero emission”.
We’ve had a bit of back and forth between those two dates, but it sounds like the sale of new petrol and diesel vehicles will end by 2030, and new hybrids will remain on sale until 2035 – after which all new cars are set to be electric.

First up, the government confirmed fuel duty would remain frozen for 2025-26, with the current 5p per litre cut maintained until March 2026.
This means fuel prices at the pump will stay steady, which is a relief for many as the cost of living remains high. The government reckon this freeze represents a £59 saving for the average driver.

Vehicle Excise Duty (VED) rate changes are due

VED rates are being adjusted in April 2025, with more focus on promoting low-emission vehicles:
Zero-emission vehicles: The first-year VED rate for new zero-emission vehicles will remain low at £10. Hybrid vehicles: Vehicles emitting 1-50 g of CO2 per km will pay a first-year rate of £110, while those emitting 51-75 g/km will pay £130. Petrol and diesel (ICE) vehicles: Cars emitting more than 76 g/km will see their VED rates double in 2025-26, making traditional fuel-powered cars significantly more costly in terms of road tax. The government is also considering raising the VED “Expensive Car Supplement” threshold for zero-emission cars in the future, which could help make higher-end electric models more accessible. All of which makes a pretty attractive case for making your next vehicle an electric one. Whether you’re aiming to buy or lease, explore your options and find your next electric car with Auto Trader.

Also announced were changes to Company Car Tax (CCT) rates, which aim to further support the transition to electric. Rate changes are set to include:
Zero-emission vehicles: Tax incentives continue for pure electric vehicles, with the percentage rate increasing gradually by 2% each year up to a cap of 9% in 2029-30. Hybrid vehicles: Hybrid company cars (emitting 1-50 g of CO2/km) will see tax rates increase more steeply. By 2029-30, hybrids will reach an 18% tax rate. Petrol and diesel (ICE) vehicles: Cars emitting more than 51 g CO2/km, rates will increase gradually as well, with percentages climbing from 19% in 2028-29 to 39% in 2029-30.

To help make electric vehicles more accessible, the government have said they will invest over £200 million in 2025-26 to increase the UK’s electric charge point network. This funding will help expand our charging infrastructure, particularly in locations where charging access remains limited – for example in urban areas and motorway routes.
A further £120 million will be allocated to support the purchase of new electric vans through the plug-in vehicle grant scheme. This grant also covers support for the manufacture of wheelchair-accessible electric vehicles, making electric options more accessible to a broader range of drivers. The government will also maintain tax incentives for businesses, such as “100% First Year Allowances on EVs and EV charge points”. These allowances are available for an additional year, meaning businesses that invest in electric infrastructure will benefit from a full deduction in the first year.

The government also announced they’ll invest £120 million into an extension of the plug-in vehicle grant over 2025 and 2026. This will support the purchase of new electric vans the manufacture of wheelchair accessible electric vehicles.

Starting April 2025, the Vehicle Excise Duty rates and Levy for HGVs will be updated to reflect inflation. Additionally, Van Benefit and Fuel Benefit charges will also increase in line with the Consumer Price Index from April 2025.
These adjustments mean businesses operating HGVs and vans should anticipate a slight increase in costs; however, the changes align with inflation.

A new open data scheme called “Fuel Finder”, which aims to improve road fuel price transparency, has been announced.
By late 2025, petrol stations will be required to report any price changes or fuel shortages within 30 minutes, giving drivers more visibility over fuel costs.

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The UK Autumn Budget is a yearly update from the government about its spending, tax plans, and overall approach to managing the economy.
Presented by the Chancellor of the Exchequer, now Rachel Reeves, it covers key changes in things like taxes, benefits, and public spending for the coming year. The Chancellor’s statement also includes predictions about how the economy is likely to perform, provided by the Office for Budget Responsibility (OBR). Together with the Spring Statement, the Autumn Budget forms the backbone of the UK’s yearly financial plan.