On Wednesday 26 November, the Chancellor, Rachel Reeves MP, presented her Autumn Budget to the nation. Faced with a fiscal shortfall of around £30 billion, the Chancellor inevitably produced a set of measures that created both winners and losers. While the Budget offered some positives for the automotive sector, including maintaining the freeze on fuel duty, it fell short of delivering substantial policy support in key areas. Notably, the Government introduced an EV pay-per-mile tax, leaving many disappointed at the limited backing for the transition to electric vehicles. Key Highlights from the Budget Pay-Per-Mile Scheme (eVED) A new mileage-based charge will be introduced for electric and plug-in hybrid vehicles from April 2028, set at around half the fuel duty rate paid by petrol car drivers. The measure is expected to raise £1.4 billion. Drivers will pay a per-mile charge in addition to existing Vehicle Excise Duty (VED). Electric cars will pay half the petrol/diesel fuel duty equivalent, while plug-in hybrids will pay a reduced rate equal to half of the electric vehicle rate. Electric Car Grant The Government will provide an additional £1.3 billion to support EV uptake, with the scheme extended to 2029–30. Employee Car Ownership Scheme The planned removal of the scheme has been deferred until 6 April 2030. Expensive Car Supplement From April 2026, the threshold for battery-electric vehicles subject to the expensive car supplement will rise from £40,000 to £50,000. Charging Infrastructure An extra £100 million will be invested to expand the UK’s EV charging network. VED Receipts from VED are forecast to reach £9 billion in 2025–26. Motability The scheme will no longer cover luxury vehicles and by 2035 half of all eligible vehicles must be British built. High-end models such as Mercedes-Benz and BMW will no longer be accessible. Fuel Duty Fuel duty will remain frozen at its current level until September next year. NFDA Chief Executive Sue Robinson’s full comments can be found here . Our full policy summary, outlining the complete details of the Budget’s impact on the automotive sector, can be found here .