What the Chancellor’s Spring Statement in March could mean for you

Chancellor of the exchequer Rachel Reeves will deliver the 2026 Spring Statement on Tuesday, 3 March. While no major new tax policies are expected, the statement will clarify motoring measures announced in the 2025 Autumn Budget and provide an update on the economy and public finances.

Here’s a roundup of the measures drivers should watch throughout 2026.

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Fuel and at-the-pump changes

Fuel duty freeze extension

The 5p-per-litre fuel duty – the tax included in petrol and diesel prices that funds public spending – has been extended until 31 August 2026. From September 2026, the duty will increase gradually: 1p in September, 2p in December, and another 2p in March 2027. Take advantage of the savings while they last before prices start rising.

Mandatory “Fuel Finder” scheme

Petrol stations must now report live price changes within 30 minutes to a central database. This new Fuel Finder scheme is designed to curb sudden price spikes, known as “rocket and feather” pricing, and is expected to save drivers between 1p and 6p per litre at the pump.

Tax and electric cars

Standard road tax increase

Vehicle Excise Duty (VED) will rise in line with inflation (RPI) from 1 April 2026. If you have a car registered after April 2017, you’ll see the standard rate increase from £195 to £200 a year.

Luxury tax threshold for EVs

Looking to buy an EV? The threshold for the “Expensive Car Supplement” is increasing from £40,000 to £50,000. That means if your zero-emissions vehicle costs less than £50,000, you’ll skip the £425 annual luxury tax – helping mid-range EVs stay within reach.

Company Car Tax (BiK)

Benefit-in-Kind (BiK) rates for electric company cars will increase slightly, from 3% to 4%, starting 6 April 2026. Employers and employees should factor this into their tax planning for EV company cars.

Regulatory and technology updates

Digital driving licences

A wider public trial of digital driving licences via the GOV.UK One Login app starts this month. You can use a digital licence for convenience, but it’s still a good idea to keep your physical card as a backup.

New theory test content

Learner drivers will see new questions on CPR and the use of defibrillators (AEDs) in the 2026 theory test. The aim is to improve emergency response knowledge for drivers and passengers alike.

London congestion charge

The daily congestion charge in London has now increased to £18. The previous 100% exemption for electric cars has ended; EV owners will now need to pay, though those registered for Auto Pay can receive a 25% discount, reducing the daily cost to £13.50.

So, while the Spring Statement may not bring dramatic new taxes, 2026 will see gradual fuel duty increases, higher road tax, and changes affecting EV drivers. There will also be practical updates, such as digital licences and new safety content for learner drivers.

Keep an eye on these changes so you can stay in control of your motoring costs.

Here are some key dates for you to note:

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