Chancellor Rachel Reeves has scrapped charges of up to £912 for thousands of drivers, providing a significant boost for motorists. The Labour Party Chancellor has introduced a 12-month road tax holiday for hauliers to mitigate rising transport costs following the war in Iran.
Hauliers will pay just £1 at road tax renewal, saving £600 for a typical heavy lorry or £912 for the largest vehicles. Ms Reeves said: "I'm keeping taxes down for drivers and businesses – putting money in the pockets of millions of workers and cutting costs for farmers and hauliers. The war in Iran is pushing up fuel prices here at home but after strong growth at the beginning of the year, I am stepping in to protect people at the pump. By protecting households and businesses we are building a stronger and more secure economy for Britain. That is the right economic plan."
Paul Holland, managing director for UK/ANZ vehicle payments at Corpay, including UK brand Allstar, commented: "Fuel price volatility has plagued fleets for so long it risks being accepted as the norm, but it shouldn't be. The Chancellor's reported plans to scrap the planned 5p fuel duty increase is welcome news and will offer some much-needed breathing space for businesses already under pressure. That said, the freeze doesn't solve the underlying challenge that fuel remains one of the biggest operational costs for fleets. Our recent research of 300 UK SMB owners and directors who manage fleets of 4 to 20 vehicles shows that just 45% of businesses have meaningful visibility over what their fleet is actually spending, leaving the majority exposed when prices move. Businesses that will navigate these turbulent times most effectively are those using data to take control: tracking driver spending patterns, setting tailored spend limits, and acting on detailed insights. The tools exist – the priority now is putting them to work."
