Drivers call on Chancellor to cut motoring costs in Budget

By automotive-mag.com 4 Min Read

Nearly three in ten (29%) want a freeze or reduction on other vehicle-related taxes and charges, while 28% are calling for a cut to Insurance Premium Tax (IPT), according to research from Close Brothers.

More than half (52%) of drivers want the Chancellor to freeze or reduce fuel duty on petrol and diesel.

And over a third (34%) urging the Chancellor to allocate more funding to local councils to tackle potholes and road repairs.

Motorists are feeling the squeeze of keeping a vehicle on the road and want the Chancellor to introduce measures to cut costs in the Budget tomorrow.

The ongoing transition to electric vehicles is also an area where motorists are eager for support.

Nearly a fifth (17%) of drivers want VAT on public EV charging reduced to align with the rate for domestic charging, whilst the same percentage (17%) would like to see the 2034 zero-emission vehicle (ZEV) mandate delayed or scrapped.

John Cassidy, managing director at Close Brothers Motor Finance, said: “Motorists across the UK are looking for decisive action and much-needed relief. Vehicle running costs continue to squeeze drivers at a time when household budgets are already tight, driven by a wider cost of living crisis.

“Combined with persistent frustration over damaged roads and concerns about the important transition to EVs, many drivers are not feeling confident that the new government will deliver for them.

“For millions of Brits, a car is a cornerstone of everyday life and it is crucial that this budget helps make motoring more accessible and affordable, whilst also providing councils with the resources needed to restore Britain’s roads.”

Motorists in the UK are hoping the Chancellor John Healey will extend the fuel duty freeze, scrap the pay-per-mile tax on EVs and cut VAT on home charging when he delivers his first Budget tomorrow.

In a poll of more than 1,000 motorists, Carwow found that top of the wish list for British drivers – cited by more than one in four (28%) – is for the Chancellor to delay or scrap the pay-per-mile tax on electric vehicles (EVs) that is due to come into force in April 2028.

Close behind, at 26% of respondents, is an extension of the current freeze on fuel duty. A 5p cut was introduced as a 12-month measure in March 2022, but successive governments kept extending it and, in May 2026, the Government confirmed the extension until the end of 2026.

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