Labour could put millions 'at risk' in Autumn Budget as experts push back at car tax rises

Labour could put millions of drivers “at risk” as a result of Autumn Budget announcements, according to a leading expert. Ian Plummer, commercial director at AutoTrader , has warned that the EV transition “risks stalling” if financial incentives are not boosted by the Chancellor. Electric car owners are at risk of losing almost all of their financial extra in months with car tax discounts set to be axed.

EV owners will pay Vehicle Excise Duty (VED) rates for the first time from April 2025 with owners set to pay at least £190 per year. However, motorists with EVs valued above £40,000 could be told to pay more than £400 on top due to an Expensive Car Supplement charge. It’s just the latest blow for EV owners and another major incentive lost with the plug-in grant already axed back in 2022.



Ian explained: "We’d like to see existing BIK and salary sacrifice incentives to support new EVs maintained, new support introduced to help drivers able to afford new and used EVs under £40,000, and a proactive and transparent approach to communicating future changes in road pricing and taxes. “Without additive supportive financial measures, the EV transition risks stalling.” This could lead to a major blow for the almost two million EV owners on UK roads who are now relying on a successful transition to justify their investment.

As of September 2024, data from ZapMap shows there were a staggering 1,985,273 plug-in cars across the country. Over 1.25 million battery-electric vehicles are now on the roads with over 715,000 registered PHEV hybrid models.

It hasn’t been the only demand for urgent financial action in tomorrow’s Budget with financial incentives and tax rates high on the agenda. Denis Watling, Managing Director at ChargeGuru UK has effectively called for the Government to U-turn over its VED tax rates for EVs. The group has demanded “zero VED” as well as lower Benefit in Kind (BiK) rates to be announced by the Chancellor.

He said: “We also hope that the various financial advantages for those people making the switch to EVs remain in place; including zero VED, lower BIK rates for company car drivers and effectively 'no' fuel duty paid.”.