Keir Starmer resigns: what happens next for UK drivers?

Keir Starmer has announced his resignation as prime minister and leader of the Labour Party, triggering a leadership contest in which Labour MPs will compete to succeed him. A new prime minister is expected to take office by September.

For drivers, Starmer’s departure is unlikely to lead to any immediate changes to policies such as vehicle taxation, fuel duty or EV incentives. However, his successor may bring different priorities for the automotive sector and broader transport policy. Here’s what Starmer’s resignation could mean for UK drivers.

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Electric car targets could change again

Just before his resignation, Starmer overruled energy secretary Ed Millband to slash the 2030 EV sales target from 80% to 50% in a bid to protect automotive manufacturing jobs. This would give carmakers more flexibility and could slow the shift away from petrol and diesel cars.

A new prime minister could choose to stick with that softer target, especially if they want to protect manufacturing jobs. But a leader with stronger environmental priorities may look again at the decision and push for tougher EV targets.

For drivers, this could affect how quickly new petrol and diesel cars become harder to buy, and how much support is offered for switching to an electric car.

Fuel duty is still a big question

The temporary 5p-per-litre fuel duty cut has been extended until 31 December 2026, but the next prime minister will have to decide what happens after that.

If the cut ends, petrol and diesel prices could rise. If it’s extended again, you’ll avoid an immediate increase at the pumps, but the government would need to find that money elsewhere.

This means fuel duty could become one of the first big motoring decisions facing Starmer’s successor.

Pay-per-mile may be pushed back

There has been growing debate around road pricing, with the proposed pay-per-mile road tax set to roll out from 2028 as a possible replacement for declining fuel duty revenues as more drivers switch to electric cars.

Starmer’s resignation makes any major decision less likely in the short term, as a new prime minister and cabinet would need to decide whether to proceed with, amend or scrap the plans.

For now, drivers should not expect pay-per-mile charges to arrive immediately.

Pothole funding and insurance action could slow down

Labour had promised to fix an additional one million potholes each year in England, while also putting pressure on councils to show how road repair money is being spent.

But a leadership contest could delay fresh action from the Department for Transport (DfT). That may mean slower progress on pothole repairs, road maintenance and any new measures aimed at tackling rising car insurance costs.

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