The Spring Statement delivered by Chancellor Rachel Reeves on 3 March 2026 may not have introduced dramatic new motoring taxes overnight, but it confirmed several policies that will affect drivers across the UK in the coming years.
From fuel duty increases and rising car tax to possible new road-charging systems, the government’s economic update signals a gradual shift in how motorists will pay for using UK roads.
Here’s a clear breakdown of the key Spring Statement changes affecting UK drivers in 2026 and beyond.
Fuel Duty Set to Rise as 5p Cut Is Removed
One of the biggest changes confirmed in the Spring Statement is the end of the temporary 5p fuel duty cut that was introduced in 2022 to help motorists during the cost-of-living crisis.
The government confirmed the discount will be phased out in stages from September 2026, with the increase rolled out gradually over several months.
The planned changes include:
- 1p per litre increase in September 2026
- 2p increase in December 2026
- 2p increase in March 2027
This effectively restores the full duty rate and would represent the first meaningful fuel duty rise in around 15 years.
For drivers, that could add several pounds to the cost of filling up a tank — especially if global oil prices rise at the same time.
Car Tax (VED) Is Increasing for Many Vehicles
Another change affecting motorists is an increase in Vehicle Excise Duty (VED) — commonly known as car tax.
The government confirmed that VED rates will rise slightly from April 2026 as they are adjusted for inflation.
For many vehicles, the standard annual rate will increase from £195 to around £200 to £205.
However, the biggest increases will affect high-emission vehicles, particularly newly registered petrol and diesel cars.
Examples include:
- Cars emitting over 255g/km of CO₂ could face first-year tax bills above £5,500.
- Vehicles in the 226–255g/km emissions band may see first-year tax rise above £4,700.
For most existing drivers, the change will likely be a small annual increase, but buyers of high-emission vehicles could see significantly higher upfront taxes. Get a free car tax check for any UK registered vehicle at Total Car Check.
Electric Vehicles Will No Longer Avoid Road Taxes
Electric vehicles have historically been cheaper to run because they avoid fuel duty and often benefit from lower taxes.
However, the government has already begun introducing changes that reduce this advantage announced in 2025.
Key changes include:
- Electric vehicles now pay Vehicle Excise Duty after the first year of registration.
- The government is considering a future pay-per-mile road tax system for electric cars.
One proposal discussed would charge around 3p per mile for electric vehicles, which is still expected to be lower than the tax burden faced by petrol and diesel drivers through fuel duty.
The Treasury argues this is necessary because fuel duty currently generates around £24 billion a year, revenue that will decline as electric vehicles become more common.
New Fuel Price Transparency Measures
The government also confirmed plans to improve fuel price transparency for motorists.
A new system known as “Fuel Finder” or “pump watch” will require petrol stations to share fuel prices in real time so drivers can compare prices more easily.
The goal is to:
- Increase competition between fuel retailers
- Help drivers find cheaper petrol and diesel
- Prevent forecourts from keeping prices high when wholesale costs fall
While this won’t reduce taxes directly, it could help drivers save money at the pump.
Other Motoring Changes
Although not central to the Spring Statement, several other transport-related changes are happening around the same time:
London congestion charge increase
London’s congestion charge rose to £18 per day in January 2026, with fewer exemptions for electric vehicles. There are no changes to London’s ULEZ (Ultra Low Emission Zone). You can check ULEZ compliance at Total Car Check.
Electric vehicle salary sacrifice tax changes
Benefit-in-Kind tax for company electric cars will rise slightly to 4% from April 2026, although EVs remain far cheaper to tax than petrol or diesel company cars.
Stricter emissions rules
New Euro 7 emissions standards coming later in 2026 will tighten rules on vehicle emissions and durability.
What the Spring Statement Means for UK Drivers
While the Spring Statement did not introduce immediate dramatic changes, it confirms a clear long-term direction for UK motoring policy.
Drivers should expect:
- Gradual increases in fuel duty
- Small but steady increases in car tax
- New taxation models for electric vehicles
- Greater transparency in fuel pricing
In short, the cost of driving is unlikely to fall significantly — but the government is trying to rebalance how road use is taxed as the UK transitions toward electric vehicles.
The Bottom Line for Motorists
For most drivers, the biggest immediate impact from the Spring Statement will likely be higher fuel costs once the 5p duty cut is removed and slightly higher car tax bills from April 2026.
However, the bigger story is the long-term shift toward new road-charging systems, particularly as electric vehicles replace petrol and diesel cars.
For motorists, the key takeaway is simple:
The way drivers are taxed in the UK is slowly changing — and the Spring Statement confirms that transition is now underway.
FAQs: Spring Statement 2026 and UK Drivers
Will fuel duty increase after the Spring Statement?
Yes. The government confirmed the temporary 5p per litre fuel duty cut introduced in 2022 will be phased out starting in September 2026.
The increase will happen gradually, meaning petrol and diesel prices could rise slightly as the duty reduction is removed.
However, the final price drivers pay will still depend on global oil prices and wholesale fuel costs.
Is car tax increasing in 2026?
Yes. Vehicle Excise Duty (VED) will increase slightly from April 2026 in line with inflation.
For most vehicles, the standard annual road tax rate is expected to rise from £195 to just over £200 per year.
Higher-emission vehicles will see larger increases, particularly during the first year of registration.
Will electric vehicles have to pay road tax?
Yes. Electric vehicles are gradually being brought into the road tax system.
New EV owners already pay standard VED after the first year, and the government is considering future systems such as road pricing or pay-per-mile charges to replace fuel duty revenue.
Will the Spring Statement make driving more expensive?
For most drivers the impact will be relatively small in the short term, but over time driving costs may rise due to:
- Fuel duty increases
- Higher car tax rates
- Potential future road-pricing systems
The long-term aim is to replace declining fuel duty revenue as electric vehicles become more common.
How can I check how much tax my car costs?
You can check a vehicle’s tax cost instantly by entering the registration number into a car tax checker.
This will show:
- Current road tax cost
- CO₂ emissions band
- Fuel type
- Other vehicle details
Use our car tax checker to see how much tax a vehicle costs.
Will fuel prices go up because of the Spring Statement?
Fuel prices could increase slightly as the temporary fuel duty reduction is removed.
However, pump prices also depend heavily on factors such as:
- Global oil prices – particularly as a result of the new war in the Middle East
- Exchange rates
- Refining and distribution costs
This means prices can still rise or fall independently of government tax changes.
How can I check a car’s emissions and running costs?
A vehicle check can show key information such as:
- CO₂ emissions
- Road tax band
- Fuel type and efficiency
- Whether the car meets ULEZ or clean air zone rules
Run a Total Car Check to see emissions, tax costs and vehicle history instantly.
