Drivers face new car tax hikes, HMRC rules and fuel duty updates after Labour's Budget
Fuel duty was kept frozen for the 16th consecutive year by the Labour Chancellor
TL;DR
- Fuel duty freeze extended until July 1, 2027, saving average car drivers an estimated £230.
- Vehicle tax rates for cars, vans, and motorcycles will increase with inflation from April 1, 2027.
- A VED exemption for search and rescue vehicles will be introduced from April 1, 2027.
- VED support for heavy goods vehicles will be extended, with potential recovery of excess benefits.
- Benefit-in-Kind rates for company cars will rise by one percentage point for 2030-2031.
- A taskforce will explore allowing domestic electricity tariffs for public EV charging.
- £100 million allocated to reduce costs for lower-powered public EV chargers.
- Higher tax-free mileage rates for business travel will be made permanent.