At the end of October, the new Chancellor of the Exchequer, Rachel Reeves, announced the 2024 Autumn Budget. This yearly update outlines the government’s plans for spending, taxes, benefits and managing the economy.
The recent budget introduced several changes for UK motorists, affecting everything from electric vehicle ownership to fuel prices and road infrastructure. To help you understand exactly what it means for business owners, fleet managers and drivers, here’s a breakdown of the major updates.
2024 Autumn Budget updates
Fuel duty freeze
Many were surprised to find out that the government would continue the fuel duty freeze, keeping petrol and diesel prices stable in the face of inflation. This relief helps many drivers manage fuel costs and fuelGenie welcomes this announcement:
“In recognising the impact of fuel prices on working people and businesses, this decision supports cost stability for UK fleet managers and small business owners who rely on affordable fuel.”
“At fuelGenie, we are proud to continue offering customers competitive fuel prices, up to 3 pence per litre cheaper than the national average through our supermarket fuel network. This ongoing commitment to affordable fuel makes a real difference to fleet managers and small business owners who rely on every saving.”
“Pump watch”
A major budget highlight is the introduction of a “Pump Watch”, aimed at increasing price transparency. This tool will help drivers compare fuel prices at nearby stations, making it easier to find affordable options. It offers greater control for drivers by providing real-time fuel price visibility and helping avoid inflated costs but it won’t launch until the end of 2025.
Luckily, fuelGenie customers and their drivers already benefit from a similar tool. On the fuelGenie app, you can search for the closest locations and compare live prices to guarantee you’re getting the best deal. It helps business owners plan routes that factor in affordable locations and keep fuel costs down which is especially useful with the overall rise in everyday expenses.
Vehicle excise duty (VED)
Perhaps the biggest update is the increase in first-year car tax rates for any vehicle emitting 1-50g/km of CO2. The costs will be rising 10-fold which isn’t great news for petrol or diesel vehicles and hybrids which will now also fall into this category. The current rate will be changing from £10 to £110 and new cars emitting between 51-75g/km of CO2 will increase from £30 (or £20 for hybrids) to £135.
From April 2025, EVs will no longer be exempt from VED. Now, EV owners will pay the lowest first-year rate of £10 and instead of rising to the standard rate after that, it seems they’ll continue to pay £10 a year until 2029-2030. This change addresses revenue loss from declining fossil-fuel car sales but adds costs for EV drivers. The shift reflects a move toward normalising EV ownership costs, even as the government continues to support green vehicle adoption.
The road to 2030
Back in 2017, the Conservative Government announced a ban on the sale of new petrol and diesel vehicles. Designed to help the UK on the journey to achieving net zero, there has been a lot of back and forth about this target. The introduction of the ban was initially set at 2035 then moved forward to 2030 and finally pushed back to 2035.
In the latest Autumn Budget, the Labour Party announced that it would introduce the ban in 2030. It seems hybrid vehicles won’t be included, at least for a further 5 years. This acts an incentive to businesses, encouraging them to future-proof their fleet by opting for electric vehicles.
EV charging infrastructure
The budget includes significant investment in public EV charging points, addressing range anxiety and improving convenience for EV drivers across urban and rural areas. The expanded charging network supports the government’s goal to phase out combustion vehicles by making EVs more accessible.
Road maintenance
The Government has allocated additional funding for road maintenance. These funds will be used to address the nation’s pothole crisis and other road conditions impacting vehicle safety and longevity. While this funding is beneficial, some argue that a more comprehensive, long-term plan is necessary to modernise UK roads. Why is this important? Improved roads can help reduce vehicle repair costs, especially for EVs, which can be more sensitive to rough surfaces due to battery weight.
Company car tax adjustments
From 2025, Benefit-in-Kind (BiK) rates for electric company cars will increase by 1% per year, reaching 5% by 2028. This gradually raises the cost of electric company vehicles, potentially affecting businesses offering EVs as perks. Although this makes EVs slightly more expensive for company fleets, they remain an eco-friendly and cost-effective option compared to traditional cars, with continued long-term fuel savings and lower environmental impact.
Final thoughts: What does this mean for motorists?
The Autumn Budget brings a mix of incentives and added costs, especially for EV owners. While the fuel duty freeze provides immediate savings, the large increase in road tax for petrol, diesel and hybrid vehicles and the addition of VED for EVs signals the government’s shift toward a more standardised approach across vehicle types.
The proposed “Pump Watch” and additional EV charging points means drivers will gain tools to better manage fuel and charging costs, alongside benefits like road maintenance that improve driving conditions overall. For now, these updates aim to balance immediate financial relief with the government’s long-term environmental goals.
Keep costs down with fuelGenie
If you’re worried about the impact of these changes on your bottom line, fuelGenie can help. Our free fuel card gives you access to low-cost supermarket fuel to help you save money while fuelGenie+ offers a larger network, including most Shell garages for convenient refuelling with some 24/7 and larger vehicle access.
Drivers can easily find participating locations and check prices using our app to streamline their journey planning and reduce downtime. Plus with automatic HMRC-approved VAT invoices, your admin will be effortless too. Applying online is simple. Alternatively, you can call our team on 0345 371 2490 and email enquiries@fuelgenie.co.uk to upgrade to fuelGenie+ or ask any questions.
