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Autumn Budget 2023: what does it mean for UK drivers
While this year’s Autumn Budget didn’t provide too much information about how the government’s planning on supporting the UK’s drivers and automotive industry, here are the key details you need to know.
Words by: Lex Kristan
Additional words by: Nimisha Jain
Last updated on 30 November 2023 | 0 min read
Chancellor Jeremy Hunt announced the Autumn Budget in the ‘Autumn Statement for growth’ on 22 November 2023. Not a lot has changed since the announcement of the Spring Budget in April 2023 that will affect drivers and businesses, but here are the key details you need to know:
1. Vehicle Excise Duty (VED) to increase from April 2023
As with every year, vehicle excise duty (VED) is set to rise again from April 2024 onwards. This tax rise affects all vehicle owners except for those driving an electric vehicle, as drivers of full electric vehicles will continue to benefit from £0 VED rates until April 2025.
2. Fuel duty remains frozen till end of March 2024
Fuel duty is payable when you buy petrol, diesel and other fuels and is included in the price you pay at the pump.
In Spring Budget 2022, the government announced a five pence per litre (ppl) cut to fuel duty to support households and businesses. This reduction was then extended by another 12 months to keep the fuel rates under check for the year 2023-24. Nothing has been announced in this year’s Autumn Budget about whether the fuel duty freeze would continue for another year or be reversed, so for now all we know is that the five ppl freeze is in place until the end of this financial year. We can expect more information in the Spring Budget 2024.
In Spring Budget 2022, the government announced a five pence per litre (ppl) cut to fuel duty to support households and businesses. This reduction was then extended by another 12 months to keep the fuel rates under check for the year 2023-24. Nothing has been announced in this year’s Autumn Budget about whether the fuel duty freeze would continue for another year or be reversed, so for now all we know is that the five ppl freeze is in place until the end of this financial year. We can expect more information in the Spring Budget 2024.
3. New plans to improve electric car infrastructure more quickly
The government has said it’ll aim to remove investment barriers for the charging network infrastructure.
This should speed up planning and approvals, and mean there’s more working chargers on UK roads. They’re aiming to halve the overall time of building the new infrastructure from 14 years down to seven.
This should speed up planning and approvals, and mean there’s more working chargers on UK roads. They’re aiming to halve the overall time of building the new infrastructure from 14 years down to seven.
4. 100% capital allowances on plant and machinery but support for rentals and leasing remains uncertain
This year's Spring Budget allowed businesses to claim their investments in machinery as a 100% capital allowance till 31 March 2026. This allowed the organisations to write off their costs in one go and benefit from a 25p tax cut per pound. This benefit, known as ‘full expensing’, didn't include the rental and leasing sector.
In the Autumn Budget this year, it was announced that full expensing will become permanent with the end date of 31 March 2026 being removed. However, there has been no further information about whether anything was being done to include the leasing and rental sector in this benefit.
In the Autumn Budget this year, it was announced that full expensing will become permanent with the end date of 31 March 2026 being removed. However, there has been no further information about whether anything was being done to include the leasing and rental sector in this benefit.
What else is coming up in 2024
That’s our round-up of this year’s Autumn Budget for the UK’s drivers. Here are some more things to keep an eye on…
• The government abandoned its 2030 ban on the sale of new petrol and diesel cars, pushing that deadline back to 2035. Keep reading • The government is granting £350 to help with the cost of installing your own charging point for those renting or owning flats. Keep reading • The government is working towards new regulations that aim at making electric car charging easier for drivers by improving the availability and transparency of prices. Keep reading
• The government abandoned its 2030 ban on the sale of new petrol and diesel cars, pushing that deadline back to 2035. Keep reading • The government is granting £350 to help with the cost of installing your own charging point for those renting or owning flats. Keep reading • The government is working towards new regulations that aim at making electric car charging easier for drivers by improving the availability and transparency of prices. Keep reading