Car tax
Drivers have until March 18 to give their feedback to the Government on the introduction of Electric Vehicle Excise Duty (eVED) announced in the Autumn Budget last year.
Chancellor Rachel Reeves outlined the terms of eVED, which will see electric car owners pay 3p per mile and hybrids pay 1.5p per mile from 2028.
The changes are being introduced to help the Government manage finances as fewer drivers buy petrol and diesel, and receipts from fuel duty continue to plunge as motorists switch to electric cars.
Fuel duty
Chancellor Rachel Reeves confirmed that the planned fuel duty increase on March 23, 2026, would not take place, and would instead be extended for a further five months.
The 5p per litre cut to the rate of fuel duty was introduced in March 2022 in the aftermath of the Russian invasion of Ukraine, which sent fuel prices spiralling.
The fuel duty cut will be reversed in three stages, including by one penny in September, 2p in December and 2p in March 2027.
Advisory fuel rates
HM Revenue and Customs has launched new measures for petrol, diesel, electric and LPG vehicle drivers in its first update to AFRs this year.
AFRs apply to company car users, with the rates designed to reimburse employees for business travel in their company cars, or for employees to repay the cost of fuel used for private travel.
Driving tests
From March 31, 2026, learner motorists will only be able to make two changes to their driving test booking, rather than the current six
Potential amendments to tests include changing the date or time, changing the test centre, or swapping an appointment with another learner driver who already has a test booked.
However, drivers will still be able to make multiple changes at one time, such as amending the date and test centre together.
Spring Statement
Rachel Reeves will deliver the Government’s first financial update of the year on March 3, 2026, as Labour faces pressure to cut costs for Britons.
No significant tax changes are expected to take place, although the Labour MP for Leeds West and Pudsey could provide updates on pay-per-mile car taxes or fuel duty changes.
She could also provide new guidance about the digital driving licence, which is expected to begin a nationwide rollout in the coming months.