MOTORISTS could face £100s in new charges as a result of possible increases in fuel duty and taxation.
Here’s everything we know about expected rule changes in Labour’s 2024 budget, as well as the reasoning behind them.
With Labour’s first budget since regaining power coming at the end of October 2024, there are fears that fuel duty could be frozen — or even increased.
The Treasury has refused to rule out a rise in fuel duty, which could prove a shock to household finances.
In March 2022, the levy was slashed by 5p per litre — and hasn’t risen since 2011.
But if this is reversed, it will cost drivers around £130 per year for a typical family car with a 50-litre fuel tank.
But experts including FairFuelUK have predicted there could be a rise of 10p — which could increase yearly bills by more than £260.
The Sun’s Keep It Down campaign secured a 12-month extension to the temporary fuel duty cut in March 2023.
The AA has even warned that for low-paid workers, losing this tax relief could result in an additional £171.60 in annual fuel costs.
CEO of ClickMechanic Andrew Jervis told the Express: “If fuel duty is increased, it’s important to consider the impact this will have on those who still rely on petrol and diesel vehicles.
“While such an increase could encourage the transition to electric vehicles with the 2035 deadline in sight, this shift must be supported by sufficient infrastructure and affordability.
“We hope that any decision on fuel duty takes into account the current economic climate and provides adequate time to allow drivers to adapt.”
Some argue that the current fuel duty freeze benefits wealthier drivers more, as they tend to own more cars and travel more miles.
A new pay-per-mile car tax scheme is being considered to replace or supplement the current Vehicle Excise Duty (VED) system.
At the moment, the vehicle excise duty band sees motorists charged a standard rate of £190 a year.
But if this is changed to pay-per-mile, this could mean higher costs, especially for for high-mileage drivers.
The introduction of this scheme is seen as a way to address the expected decrease in VED revenue as more drivers switch to electric vehicles.
The Campaign for Better Transport (CBT) has written to Chancellor Rachel Reeves, urging her to impose a pay-per-mile car tax scheme.
Director of policy and campaigns for the CBT, Sylvia Barrett, said: “The new chancellor faces a looming black hole.
“She can avoid it, in a way which is fair and which garners broad public support.
The Sun has backed drivers as part of the Keep It Down campaign with rates of fuel duty not rising since the start of 2011.
Former Chancellor of the Exchequer Jeremy Hunt earlier this year thanked Sun readers for helping him to make the case to freeze fuel duty in his last Budget.
The freeze meant drivers would not have to face a potential £100 rise in motoring costs as a result of a 12p per litre duty hike.
Our decade-long campaign fights on behalf of readers to freeze duty on petrol and diesel to help deal with rising living costs.
Mr Hunt said: “I know how much Sun readers are feeling the pinch right now.
“Whether you drive a van, a hatchback or a people carrier I know how much you need to be on the road.
“Keeping it down means hard-working people will have an extra £100 this year without having to cut down using their vehicle.”
“But she should start now, as this issue will only get more pressing.”
She added: “It should be cheaper to drive a zero-emission vehicle than a more polluting vehicle, but it’s only fair that these drivers should pay a share, and a pay-as-you-drive model can achieve this.”
Barrett also said the possible new system would involve “simple charges” based on “regular odometer readings”.
The CBT is a coalition of 37 transport-related organisations advocating for vehicle taxation reform by the Treasury.
CBT member the RAC said a “simple and fair” road pricing scheme was needed as a “replacement form of taxation”.
The Confederation of Passenger Transport also suggested that a pay-per-mile tax structure could help reduce traffic congestion and promote the use of public transportation, thereby contributing to lower emissions.
