Everything Rachel Reeves’ October Budget holds for drivers including brutal fuel duty hike… & how you can cut costs

DRIVERS are expected to beryllium deed hard arsenic the Government looks to rise much-needed cash.

Chancellor Rachel Reeves volition present Labour's archetypal Autumn Budget connected Wednesday, with motorists expected to bear hefty other costs.

These see fuel work increasing for the archetypal clip successful 14 years - bumping up prices astatine the pumps.

The Government says turning astir a £22 cardinal "black hole" successful same-year spending is captious for moving nationalist services.

That's connected apical of different £20 cardinal the Treasury needs to rise implicit the adjacent fewer years.

But the Chancellor has chosen to effort and extract much from Britain's hard-pressed drivers successful assistance of that goal.

Here's what it could mean for you and however you tin support costs down.

Fuel Duty

The biggest alteration Ms Reeves is expected to marque is the archetypal summation successful substance work for 14 years.

This work is the taxation that companies wage to let them to merchantability substance successful the UK.

However, the outgo is passed connected to customers by including it successful the prices astatine the pumps.

Since 2011, the main complaint has been frozen astatine 57.95p per litre of petrol and it was chopped further to 52.95p per litre successful 2022.

This chopped was ever presented arsenic impermanent but stuck astir beyond the predetermination and alteration of government.

Now, though, it is expected to beryllium reversed adjacent week erstwhile Ms Reeves rises to the dispatch box.

And she is reportedly considering tacking connected the archetypal emergence successful the work successful implicit a decade, with an other 7p per litre perchance added on.

Experts from WhatCar person estimated that specified a determination would bump up prices connected the forecourt from the existent mean of 135.03p to 145.61p per litre.

Quentin Willson, motoring campaigner and erstwhile look of Top Gear, told SunMotors: "‘I expect the chancellor to scrap the 5p Covid chopped and besides rise substance work by 2p to 3p.

"After 13 years of freezes, there’s an anticipation that this is the close clip for a work hike, arsenic we participate an epoch of cheaper oil.

"A 7p emergence successful work - if lipid prices enactment unchangeable - would bring petrol to 142p and diesel to 147p per litre costing drivers £4 much per capable up and an other £175 per year.

"Taxi operators are already saying the hike could outgo them up to £1,000 per twelvemonth successful other substance costs."

So however tin I support costs down?

Mr Wilson has besides shared his tips for keeping substance usage down.

First of all, helium recommended removing arsenic overmuch other value from the car arsenic possible.

Anything successful the boot, doors and adjacent glovebox, arsenic good arsenic things similar extortion racks, that you aren't utilizing adds wide and makes your centrifugal little efficient.

Likewise, marque definite that you don't walk extended periods with the engine idling.

Sitting with the motor connected burns substance adjacent erstwhile you're not moving truthful marque definite to power disconnected arsenic soon arsenic you parkland up and not deed the ignition until you're acceptable to leave.

Lots of modern cars person automatic stop/start features to prevention substance but it could besides beryllium worthy switching disconnected manually if you're apt to walk much than astir 10 seconds sitting successful traffic.

Once you get connected the move, Quentin besides had immoderate tips for however you should beryllium driving to marque the astir retired of a tank.

Gentle acceleration and braking, easing disconnected successful turns and shifting up arsenic aboriginal arsenic imaginable each trim accent connected the motor and boost efficiency.

Turning disconnected the heater erstwhile the compartment has warmed up could besides reduce substance consumption by up to 10%, helium added.

And readying your way is indispensable truthful that you don't get mislaid and discarded substance driving astir aimlessly.

Elswhere, technology tin beryllium a large help, with astir cars diagnostic a travel meter, which measures your mileage per journey.

This tin assistance you measurement what benignant of mpg you're getting and fto you cognize if you request to thrust much economically.

Similarly, Quentin advised utilizing escaped apps and websites to compare section petrol prices and get the champion deal.

You could spot gaps of up to 5p per litre betwixt forecourts conscionable a fewer miles apart.

As agelong arsenic you don't person to thrust excessively overmuch retired of your mode to get there, this tin beryllium a large mode to save.

Mr Wilson added: "For the archetypal clip successful 13 years, we’re apt to spot a hike successful substance work successful the upcoming Budget.

"But astir drivers don’t realise you tin summation the miles you get to each litre by arsenic overmuch arsenic 25% if you conscionable get into a fuel-saving mindset."

Road Tax

Another large money-raiser coming successful is the hold of roadworthy taxation to electric vehicles.

At the moment, cars are taxed based connected their emissions standing but EVs person been exempt until present successful an effort to incentivise drivers to marque the power from petrol and diesel.

But the Treasury tin lone prolong that for truthful agelong earlier roadworthy taxation receipts commencement to adust up.

As a result, the past Government announced that the taxation would beryllium extended to EVs successful April 2025, with owners paying the lowest set complaint beyond the 2nd twelvemonth of registration.

They volition besides person to cough up for the costly car supplement from the 2nd to 5th year, adding an other £410 per twelvemonth to their measure if their centrifugal is worthy implicit £40,000.

Since EVs thin to beryllium much costly than their petrol counterparts, that really covers a ample chunk of the models presently connected the market.

And the existent authorities is not expected to marque immoderate changes to the argumentation successful the Budget, meaning EV fans are acceptable to beryllium deed hard from adjacent year.

Insurance premium tax

One taxation which galore Brits mightiness beryllium little acquainted is security premium taxation (IPT).

As the sanction suggests, this is simply a taxation the Government collects connected astir forms of security premiums.

Like substance duty, it is efficaciously a hidden levy arsenic it is charged to providers and folded into the costs passed onto customers.

The modular complaint presently sits astatine 12% but reports from the Insurance Times suggest that Ms Reeves could look to rise this adjacent week.

And conscionable similar substance duty, this would mean higher prices for security customers overnight arsenic companies question to support their margins.

Pay-per-mile

One happening that won't beryllium coming successful the Budget is simply a caller strategy of roadworthy tax.

Reports surfaced earlier this twelvemonth that the Treasury was considering introducing pay-per-mile (a.k.a roadworthy pricing) to marque up for the driblet successful VED and substance work receipts caused by the expanding uptake of EVs.

The argumentation would mean that drivers were charged a acceptable magnitude for each mile they question alternatively than based connected the emissions standing of their conveyance arsenic is presently the case.

Some supporters adjacent suggested a complaint arsenic precocious arsenic 15p per mile, which would person seen the mean taxation measure summation by £190 a year.

However, arsenic archetypal reported by The Sun, the Government has officially ruled retired pay-per-mile being introduced successful the adjacent future.

A spokesperson for the Department for Transport told The Sun: "We person nary plans to present roadworthy pricing.

"We are committed to supporting our automotive assemblage arsenic we modulation to electrical vehicles successful bid to conscionable our legally binding clime targets."