The Autumn Budget explained what does it mean for motorists?

IN DETAIL Rachel Reeves has unveiled her financial plans for 2026 and beyond; we look into how they will affect drivers

- Tom Jervis [e-mail]

CHANCELLOR Rachel Reeves unveiled her plans for the nation's finances in the Autumn Budget in late November.

While it's easy to switch off from all the Whitehall drama - and after the last few years, we don't blame anyone who has - this year's Budget has sent shockwaves through the car industry and will impact millions of drivers across the country.

With this in mind we've put together a guide explaining all the changes that will affect motorists.

PAY-PER-MILE TAX FOR EVS

UNDOUBTEDLY the headline (and most controversial) change brought in by the Government is a pay-per-mile tax (also known as 'road pricing') for electrified cars.

Designed to fill the financial hole created by fewer drivers spending cash at the petrol and diesel pumps, the new eVED (Electric Vehicle Excise Duty) system works by charging EV drivers a fixed rate for every mile they drive over and above a standard flat rate of VED.

From April 2028, those driving EVs, and thus not buying petrol at all, will be charged 3p per mile. This equates to £12 for areturn trip between London and Manchester, or £250-300 per year for the average driver. Plugin hybrid cars will be subject to lower pay-per-mile tax, at 1.5p per mile - but both will rise over time in line with the Consumer Price Index.