Spring Statement 2025: Key Changes Ahead for UK Drivers
The Spring Statement 2025 is expected to bring several important changes for drivers in the UK. Here are the key updates motorists should know about:
Car Tax Changes (From April 2025):
- Electric cars: £10 first-year tax (new)
- Hybrid/low-emission vehicles (1-50g/km CO2): £110 rate
- High-emission vehicles (76g+ CO2): Doubled rates, up to £5,490 first year
- Expensive Car Supplement remains unchanged for vehicles over £40,000
Smiling woman with red briefcase
Fuel Duty:
- Freeze extended until March 2026
- Planned 2025/26 increase cancelled
- Average driver savings: £59 per year
Electric Vehicle Support:
- £200m for charging infrastructure
- £120m for plug-in van grants and wheelchair-accessible EVs
- Possible ZEV mandate review (currently 28% of new car sales must be electric)
New Initiatives:
- Fuel Finder tool launching by end of 2025
- Expected savings: 1-6p per litre
- Based on Northern Ireland's successful model
Industry Protection:
- New measures expected to support British car manufacturing
- Response to recent factory closures and delayed investments
- Focus on maintaining UK automotive sector stability
The Spring Statement, scheduled for March 26, aims to provide stability and certainty for families and businesses regarding upcoming tax and spending changes.
Industry experts are calling for:
- Removal of EV tax disincentives for vehicles over £40,000
- More flexible approach to zero-emission vehicle transition
- Additional support for home charging installation
- Improved EV insurance accessibility
- Clear direction on future ZEV policies