The UK’s Autumn Budget delivers a mixed outcome for the automotive sector and consumers, failing to decisively address the ongoing uncertainty that plagues car purchases. While some measures offer short-term relief, the long-term picture remains complex and potentially discouraging for buyers.
Electric Vehicle Taxation Remains a Question Mark
A key point of contention is the planned pay-per-mile tax on electric vehicles (EVs) and plug-in hybrids, slated for 2028. The lack of concrete details raises concerns about implementation – will drivers self-report mileage, or will digital tracking be required? This invites questions about data privacy, cross-border charging, and potential loopholes. The mere announcement of this tax has already fueled negative headlines, even though its specifics are undefined.
Fuel Duty Relief Is Temporary
The temporary freeze on fuel duty, retaining the existing 5p cut, provides only short-term respite. Prices will rise again in 2026, potentially driving buyers toward more fuel-efficient vehicles or EVs. Government funding for the Electric Car Grant is extended to 2030, but this may not be enough to counteract the broader confusion.
The 2030 Ban Looms
The proposed ban on new petrol and diesel car sales by 2030 creates further uncertainty. It’s unclear which hybrids will be exempt, and the shifting goalposts leave buyers hesitant. The budget doesn’t offer clarity on how these changes will affect consumer behavior.
Limited Relief for EV Affordability
Raising the VED tax threshold for “expensive cars” to £50,000 makes some EVs more affordable. However, this is offset by the lack of action on charging costs. Public charging remains expensive, particularly for drivers without home charging access – a demographic that would benefit most from EV adoption in urban air quality zones.
The Bottom Line: More Questions Than Answers
The budget provides no clear direction for car buyers. Instead of simplification, it adds more complexity. The Government missed an opportunity to deliver a positive message about EVs, leaving consumers with increased doubt. This indecision will likely prolong the uncertainty in the market.
