New driving laws and road changes in November from petrol and diesel to tax

Driving law changes launching in November could see new fuel duty rules, pay-per-mile car taxes and more. The warnings for motorists, road users and drivers come as Labour Party Chancellor Rachel Reeves prepares to deliver her Autumn Budget.

In comments about the budget released overnight by the Treasury, Reeves says: "My belief in Britain burns brighter than ever. And the prize on offer to today is immense. More pounds in people’s pockets. An NHS that is there when you need it. An economy that is growing, creating wealth and opportunity for all. Because that is the only way to improve living standards.

"And the only way to drive economic growth is to invest, invest, invest. There are no shortcuts. To deliver that investment we must restore economic stability." The Treasury is also saying the budget will end austerity. In its overnight press release, it says: "[Reeves] will make clear that this budget rejects austerity, instead prioritising economic stability, investment and reform.

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"The budget will ensure funding to cut hospital waiting lists, unlock affordable homes and new investment to rebuild schools. Meanwhile, working people won’t face higher taxes in their payslips in line with the manifesto commitment not to increase taxes on income tax, VAT or employee national insurance.

"The chancellor will reflect on the tough decisions she has had to make to restore economic stability, on spending and welfare by cracking down on fraud, tax avoidance and waste, and making sure every penny of taxpayer money is spent wisely."

Fuel duty

The Chancellor could target fuel duty as a way to address the £22billion black hole in funding, potentially hiking petrol and diesel prices by at least five pence. The 5p per litre fuel duty cut was unveiled in March 2022 by former Chancellor Rishi Sunak in response to Russia's invasion of Ukraine, with the freeze being extended twice.

It is currently set to expire next March. Fuel duty currently sits at 52.95p per litre after the Conservatives announced a 5p cut to fees back in 2022. A 7p rise will effectively end the discount and add an extra 2p increase, with duty rates to sit at 59.95 per litre.

Potholes

Jeremy Hunt announced a £200 million increase in funding to fix potholes in 2023’s spring budget, and Rachel Reeves is rumoured to be putting even more cash towards mending potholes across the country. Labour pledged to fix one million potholes in its manifesto before the election, saying that funding would come from deferring the already delayed A27 bypass in West Sussex. The project was deemed “poor value” by Labour and was set to cost around £320 million.

VED

Some reports suggest that Labour could be about to introduce pay-per-mile road pricing – which would see motorists paying for each mile they drive, rather than a flat yearly fee. The Department for Transport has denied the reports. Howard Cox founder of FairFuelUK commented: “Inflation has fallen to 1.7 percent, mainly due to lower pump prices. Yet in Spain, diesel is 27p per litre less than here. Why?

“Most EU states have consistently recognised that the cost of derv is the catalyst to lower inflation, so these countries tax hauliers and logistics considerably less. Why doesn’t the Treasury ever recognise this?”

Electric car charging

The Public Charge Point Regulations guidance was unveiled last year to ensure EV chargers are more reliable for motorists, with the Government giving a one-year grace period to ensure a number of conditions are met. This includes ensuring that new public charge points of 8kW and above and existing charge points of 50kW and above offer contactless payment options.

Electric car incentives

The government is facing increasing pressure to bring in new incentives to tempt buyers into EVs. The SMMT wants the government to cut VAT on new electric cars by as much as 50% to make them more affordable, as well as make them exempt from the “luxury car” levy, an additional tax applied to cars costing more than £40,000. It’s also calling for a VAT cut on public charging from 20% to 5% to match the rate for home charging.