Four talking points for drivers ahead of Spring Budget including petrol and diesel update

Four talking points for drivers ahead of Spring Budget including petrol and diesel update

Experts have called for updates to fuel fees, electric car charging rates and upfront costs at Jeremy Hunt’s Spring Budget next week.

Petrol and diesel costs lead the speculation with concerns over the future of fuel duty charges.

Rates have not risen for over a decade but planned increases are on the horizon and will affect combustion owners within weeks.

Campaigners have also suggested updates to car insurance fees are urgently needed as costs continue to soar while road infrastructure projects could also be looked at. takes a look at the four biggest talking points ahead of the Spring Budget on March 6.

Fuel duty

For motorists, fuel duty rates is the biggest talking point heading into next week’s Spring Budget. Almost every year in the build-up to budget day fuel duty is on the agenda and every year the same decision is made, to freeze rates.

Fuel duty fees have not increased now for over a decade since the last rise back in 2011 with fees even cut by 5p per litre in May 2022 to help drivers battle the cost of living crisis.

As things stand, this 5p cut is set to end on March 23, 2024, which will see fuel duty fees rise from 52.95p back to the original 57.95p.

But, Jeremy Hunt could decide to leave rates at 52.95p to win over motorists ahead of an expected General Election in the Autumn.

Leading campaign group FairFuelUK have called for a further 20p fuel duty cut but this is unlikely to materialise.

Electric car changes

One of the most called for changes in the motor industry is to slash VAT rates on electric car charging stations. Under the existing system, those charging their vehicle using public bays will pay a whopping 20 percent VAT on transactions.

This compares to just five percent for those who top-up their vehicle at home meaning those without off-street parking are punished. There have also been calls to reduce the VAT charged on new electric car purchases to boost private sales.

The Society of Motor Manufacturers and Traders (SMMT) said halving VAT on models would save the average consumer a staggering £4,000 when buying an EV.

The industry expert said the Budget statement was a “crucial opportunity” to re-energise the EV market with the introduction of a “fair tax” system.

Car Insurance

Experts at the AA have called for the Chancellor to look at cutting Insurance Premium Tax (IPT) charges to battle soaring car insurance costs.

IPT fees are calculated as a percentage of your premium and added to the total costs with bills soaring across all demographics.

The AA has suggested IPT rates should be cut by at least 25 percent for all road users with a 50 percent decrease for young motorists.

Drivers in this age range often pay higher IPT as their premiums are massively higher than other age groups.


Last week, the Department for Transport pledged £4.7billion of reallocated HS2 funding into the North and Midlands through the Local Transport Fund.

The DfT confirmed the announcement follows the Government’s Plan for Drivers which may help generate up to an extra £100million for local councils to resurface roads and tackle potholes.

The extra funds will give local authorities “long-term certainty” to invest in ambitious transport improvements between 2025 and 2032.

Jeremy Hunt may touch on this in the Spring Budget and give more details about how the funding will be used.

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