Chancellor Rachel Reeves is set to deliver her make-or-break autumn budget today, with significant implications for millions of UK drivers facing potential tax changes and new regulations.
The Labour Chancellor will address the Commons from 12:30pm on Wednesday, November 26th, 2025, outlining tax and spending measures designed to address a multibillion-pound shortfall in public finances.
Fuel Duty and Vehicle Tax Changes
In a move that will affect every motorist, Rachel Reeves is expected to maintain the 5p cut in fuel duty that was originally introduced in 2022. The Chancellor will ensure the rate does not rise with inflation, providing some relief to drivers amid ongoing cost pressures.
The decision comes after FairFuelUK delivered a landmark petition bearing more than 152,000 signatures to Downing Street, urging the government to avoid changes that could hammer millions of drivers at the pumps.
Meanwhile, the government is expected to follow tradition by allowing Vehicle Excise Duty to rise in line with inflation in the new financial year.
Pay-Per-Mile for Electric Vehicles
One of the most significant changes involves a proposed new taxation system for electric vehicle owners. The Chancellor is reportedly considering introducing a 3p per mile tax for electric vehicles as she seeks to protect Treasury revenues during the transition away from petrol and diesel vehicles.
This move addresses concerns about declining fuel duty contributions to the Exchequer as more drivers switch to cleaner vehicles.
Electric Vehicle Funding Boost
Despite the new tax proposals, the government is demonstrating its commitment to electric vehicle adoption through substantial financial support. Rachel Reeves will unveil a £1.5 billion funding package designed to accelerate the transition to cleaner transport.
The package includes £1.3 billion allocated to grants that reduce the price of electric vehicles by up to £3,750 for buyers. An additional £200 million will support the rollout of charging points across the country, addressing one of the key barriers to electric vehicle adoption.
With the government under intense pressure to balance environmental goals with fiscal responsibility, today's budget announcements will shape the future of motoring in Britain for years to come.
