Autumn budget 2024: what it means for motorists

Chancellor Rachel Reeves will announce the Autumn budget on Wednesday 30 October, the first one since Labour’s election victory in July. But what will it mean for motorists?

It’s that time of year again where the Chancellor of the Exchequer announces how the government will be spending your money for the next six months. Millions of Brits will be waiting on bated breath as the Autumn budget is spelled out, so what can motorists expect?

Well there are rumours of an increase in fuel duty, and there’s been talk of pay-per-mile road pricing being introduced as well. A crackdown on the nation’s potholes has also been announced with millions of pounds being set aside to fix the roads.

Will fuel prices go up?

The price of petrol and diesel has been a hot topic over the past few years. Fuel duty has been frozen at 52.95 pence-per-litre since 2011, and a 5 pence-per-litre discount has been in force since March 2022.

The discount was brought in to help motorists cope with the sky-high cost of living, and it’s been extended multiple times. Jeremy Hunt, the previous chancellor under the Conservative government, extended the cut in his spring budget until April 2025.

There are growing rumours that Rachel Reeves could be about to scrap the 5 pence-per-litre discount, as well as reinstate inflation-based yearly rises. This could increase fuel duty by seven pence-per-litre. Don’t start panicking just yet though, as nothing is confirmed just yet.

Increased funding to repair potholes

It could be good news for those of you who are sick of weaving around potholes all the time, because there may be massive investment in fixing the UK’s roads as part of the autumn budget.

This is something which has been promised in previous budgets as well. 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.

What about road tax?

Road tax, or vehicle excise duty, usually goes up with inflation during the spring budget rather than the autumn statement, however 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 already quashed these rumours, stating that there are no plans to introduce road pricing in the autumn budget. Such a scheme could still be implemented in the future though, after all the government has already invested in technology which makes it possible.

Keep an eye on this page for updates on the autumn budget…

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