Rachel Reeves could launch major driving law changes at Autumn Budget including car tax, fuel duty and more

WATCH: Rachel Reeves says she will continue to support the purchasing of electric vehicles

|

GB NEWS

Felix Reeves

By Felix Reeves


Published: 07/09/2025

- 12:13

Updated: 07/09/2025

- 12:13

The Chancellor will deliver the Autumn Budget on November 26

Drivers could see countless rule changes introduced within weeks as the Chancellor prepares to deliver the Autumn Budget after months of financial concerns.

Chancellor Rachel Reeves is set to unveil the Government's spending plans in the Autumn Budget on Wednesday, November 26, with millions across the country eagerly waiting to hear what she announces.


Motorists will be waiting to hear updates from the Chancellor that could help them save money as the cost of living crisis continues to have an impact on Britons.

GB News has rounded up the possible updates that Rachel Reeves could unveil during the Autumn Budget on Wednesday, November 26, that will impact millions of motorists.

Do you have a story you'd like to share? Get in touch by emailing motoring@gbnews.uk

Vehicle tax reminder, Chancellor Rachel Reeves and a pot of money

Chancellor Rachel Reeves could introduce new driving laws during the Budget on November 26

|

GETTY/PA

Car tax

The Chancellor is expected to provide details on the future of Vehicle Excise Duty in the Budget as drivers plan ahead for the new financial year in April 2026.

In keeping with tradition, it is likely that Rachel Reeves will hike the rate of the VED car tax by inflation, resulting in more expensive costs for petrol and diesel drivers, as well as electric car owners, who were required to pay tax for the first time in April earlier this year.

Further changes could be made to the system of taxation, with experts consistently warning the Government of the massive £35billion drop in fuel duty revenue likely to be seen in the coming years, with suggestions that road pricing, such as pay-per-mile, could be a suitable replacement.

Fuel refill in a petrol station

Drivers could see fuel duty rates rise in the November Budget

|
PA

Fuel duty

In the Chancellor's first Budget in October 2024, she announced that the Government would continue to 5p per litre freeze on the rate of fuel duty for a further 12 months, meaning it will now expire on March 22, 2026.

The tax cut, which is worth £3billion over 2025-2026, could help the average motorist save around £59, while Reeves also scrapped the planned inflation increase for the next financial year.

However, with the Government facing another funding black hole worth billions, the Labour MP for Leeds West and Pudsey could look at fuel duty to save around £3billion and return the fuel duty rate back to 57.95p per litre for petrol and diesel drivers.

LATEST DEVELOPMENTS:

Car insurance

The ABI has called for changes to Insurance Premium Tax

|
GETTY

Car insurance

While motor cover rates have fallen since the start of the year, they are still much more expensive than they have been in previous years, with the Chancellor potentially helping drivers with expensive costs.

The Association of British Insurers have previously called on the Government to ease the rate of Insurance Premium Tax (IPT), which could save motorists around £100 a year.

Data from the AA shows that the total amount collected from IPT totalled almost £700million in 2024, representing a dramatic increase of 8.6 per cent compared to the previous year.

Fuel prices

The Government is expected to launch Fuel Finder later this year

|
PA

Fuel Finder

The long-awaited Fuel Finder tool is still set to launch by the end of the year, although some have criticised the speed at which it is being implemented. The Government said it would launch, subject to parliamentary procedure.

Millions of petrol and diesel drivers will be hoping the Chancellor provides an update on the Fuel Finder tool when she stands at the Despatch Box in November.

A spokesperson from the Department for Energy Security and Net Zero (DESNZ) told GB News that Fuel Finder "is on track" and would help motorists save money when visiting their local petrol station.

They added: "Fuel Finder will ensure retailers share real-time prices, making them more accountable to drivers. We have also given the Competition and Markets Authority powers to monitor competition in the road fuel market, to make sure people aren't being charged rip-off prices when they fill up."

Lotus headquarters in HethelLotus confirmed it was 'actively exploring strategic options' | LOTUS

Car production

Manufacturers across the UK have struggled in recent months due to changing market conditions and the impact of President Donald Trump's tariffs on foreign car imports.

Some automakers, like Jaguar Land Rover, have reported smaller profits, while others, like Lotus, have announced their decision to cut hundreds of jobs from their UK workforce as part of a restructuring programme.

Chancellor Reeves could introduce new incentives to help manufacturers stay in the UK, although it is not known whether this would be included in the Autumn Budget.