The 3 ways Rachel Reeves could declare all out war on drivers in November Budget

Rachel Reeves may be about to declare all-out war on UK motorists in her Autumn Budget, with three updates set to be announced. The Chancellor could hit motorists with the trio of radical price hikes in her statement on November 26.

A pay-per-mile charge affecting electric car owners from 2028 is likely to be announced, ending speculation over when a road pricing system could launch in the UK. However, experts have also suggested that petrol and diesel fuel duty fees could rise while updates to Vehicle Excise Duty (VED) bands are almost a certainty. Express.co.uk looks at three of the biggest announcements Reeves' could slap on UK drivers later this month.

Pay-per-mile fees

Rachel Reeves looks set to push ahead with plans for a 3p per mile car tax fee for electric car owners. Motorists of EVs are likely to be charged up to 3p per mile to use the roads from 2028, on top of other road taxes.

The move is set to reverse a loss of fuel duty revenues as more motorists make the transition to electric cars. However, early predictions indicate that electric car owners could be hit with an extra charge of up to £250 a year.

The changes could see road users paying an extra £3 for a one-way journey between Cambridge and Oxford. But, EV drivers could be set to splash out up to £12 to travel between London and Edinburgh.

Fuel Duty

Experts have called on Rachel Reeves to introduce the first fuel duty rise since 2011 at her Autumn Budget. RSM UK said fuel duty revenues had traditionally provided a "significant proportion" of the UK's tax take.

However, drivers transitioning to EVs means that fuel duty revenue is expected to represent just 2% of total tax revenues in 2025/26. Due to this downward trajectory, the specialists warned it was "highly likely" that motorists will see a change to fuel duty rates.

The Campaign for Better Transport has also written to Reeves, calling for an end to the temporary 5p cut introduced by the Conservatives in 2022. They claim that allowing the reduction to expire in March 2026 would help to recoup £2.6 billion a year in lost revenues.

Vehicle Excise Duty (VED) bands

Almost all petrol, diesel and electric car owners will be affected by annual VED rises that will almost certainly be greenlit for next April. VED bands are increased in line with inflation every Spring, with 2026 likely to be no different.

Last year, standard rates for cars built after 2017 increased by £5 from £190 per annum to £195 a year so drivers should expect another £5 or £10 rise. First-year VED rates for brand new vehicles were overhauled last year, with many charges doubling, and further rises this year should not be ruled out.

Older cars registered between 2001 and 2017 will also face rises on a sliding scale depending on vehicle emissions. Meanwhile, the Expensive Car Supplement charge issued on many new models over £40,000 in value will also likely go up.