Chancellor Rachel Reeves delivers the Spring Statement on Tuesday 3 March 2026. While no major new taxes are expected, the statement will confirm the timelines for several policies that will hit drivers directly in the pocket — from fuel duty increases and road tax hikes to EV tax changes and the London congestion charge rise. Here's everything you need to prepare for.
Why This Spring Statement Matters for Drivers
The Spring Statement is typically a lighter affair than the Autumn Budget — an economic update rather than a full fiscal event. But this year, it arrives at a critical moment for UK motorists. Several measures announced in the October 2025 Budget are now weeks away from taking effect, and the statement will lock in the details.
For drivers, this is less about surprise announcements and more about confirmation. The policies are already set. The question is whether the Chancellor adjusts any timelines — and whether there's any relief alongside the cost increases.
Fuel Duty: The 5p Cut Is Ending
The temporary 5p-per-litre fuel duty cut has been in place since March 2022. It was extended repeatedly, but the October Budget confirmed it will finally be reversed — not in one hit, but in three stages.
For a driver filling up once a week, that's an extra £286 per year by the time the full increase lands — and that's before any movement in wholesale oil prices. We covered the full timeline in our fuel duty article.
Could Reeves Delay It?
Unlikely. The Chancellor has already factored the revenue into fiscal forecasts. However, there's speculation she may use the Spring Statement to announce a review mechanism — tying the September increase to oil prices at the time. If Brent crude remains near $58/barrel, the argument for delay weakens. If prices spike, there's political cover to pause.
Road Tax: VED Rises in April
Vehicle Excise Duty rates rise with inflation (RPI) from 1 April 2026. The headline changes aren't dramatic in isolation, but they add up — especially for drivers buying new or nearly-new cars with higher emissions.
For full details on every VED band and what your car will cost, see our road tax changes guide.
Electric Vehicle Drivers: Mixed News
The Spring Statement is expected to confirm several changes that make EVs slightly more expensive to run — while still keeping them significantly cheaper than petrol or diesel overall.
- VED at £200/year — The free ride on road tax is over. EV owners pay the same standard rate as everyone else from April
- Expensive Car Supplement threshold rises to £50,000 — If your EV cost under £50,000, you skip the £425 annual surcharge. This helps mid-range models like the Tesla Model 3, MG4, and BYD Atto 3
- Benefit-in-Kind rises from 3% to 4% — Company car drivers with EVs will see a small increase from 6 April. Still vastly cheaper than the 28–37% BiK rate on petrol and diesel cars
- London congestion charge now £18 — EVs lost their 100% exemption. The daily charge is £18, reduced to £13.50 with Auto Pay. For London EV commuters, this is a significant new running cost
Still Cheaper Overall
Even with these changes, an EV typically costs £800–1,200 less per year to run than an equivalent petrol car when you factor in fuel vs electricity, servicing, and tax. The gap has narrowed, but it hasn't closed. See our full EV vs petrol comparison.
What It All Means: The Real Cost to Drivers
Taken together, the policies being confirmed in and around the Spring Statement add up to a meaningful increase in driving costs for 2026. Here's what a typical UK driver can expect.
For a typical driver spending £3,500 a year on motoring costs (see our full cost breakdown), the fuel duty increase alone adds roughly 8% to the fuel portion of that bill. Combined with rising insurance premiums and VED increases, 2026 is shaping up to be one of the most expensive years for UK drivers in recent memory.
The Silver Lining: Prices Are Low Right Now
There is one piece of genuinely good news. As of late February 2026, UK petrol prices sit at around 131p per litre — the lowest since July 2021. Diesel is at roughly 140p. Oil prices are hovering near $58 per barrel, with OPEC+ maintaining output and global demand forecasts softening.
That means drivers have a window of relatively cheap fuel before the September duty increase lands. We covered the reasons behind the current dip in our fuel prices analysis.
Spring forecasts suggest petrol could edge down to 128–132p by April if crude stays near current levels. But the September duty hike will add at least 6p overnight, taking prices back toward the 137–140p range even if wholesale costs stay flat.
Watch for Margin Games
When fuel duty rises, not every retailer passes on the exact increase — some use it as cover to widen margins. The Fuel Finder scheme means you can now see exactly what every station charges. Use Fuelwise to compare before every fill-up, especially in September when prices move.
Other Measures to Watch
- Driving test booking changes — From 31 March, you're limited to 2 changes per booking. The government is cracking down on test date reselling bots
- ZEV mandate update — The Spring Statement may confirm the 2026 target for the percentage of new car sales that must be zero-emission. Manufacturers falling short face fines, which could affect pricing
- Clean Air Zone expansion — Several cities are consulting on new or expanded emission zones. The statement may reference timelines. See our full guide to UK Clean Air Zones
- Digital driving licence rollout — The GOV.UK Wallet trial continues to expand. We covered the details in our digital licence guide
How to Prepare
You can't control government policy, but you can minimise the impact. Here's what to do before and after the Spring Statement:
- Lock in cheap fuel now — Prices are near a four-year low. If you have the storage or are planning a long journey, fill up sooner rather than later
- Check your VED band — If you're buying a car before April, understand the first-year rates. High-emission models face steep showroom taxes
- Compare every fill-up — The Fuel Finder scheme and tools like Fuelwise make it easy to find the cheapest station near you. Even 5p per litre saves £143 a year
- Review your driving habits — Our hypermiling guide covers techniques that can cut fuel consumption by 15–30% without any cost
- Consider your insurance renewal — If your renewal falls near April, shop around early. Our insurance guide has the strategies that actually work
The Bottom Line
The Spring Statement won't spring many surprises for drivers — the policies are already in motion. But it will mark the moment these costs become official and irreversible. The fuel duty increase alone will cost typical drivers nearly £300 a year. The best defence is preparation: compare prices, drive efficiently, and make every fill-up count. Fuelwise can help you find the cheapest fuel near you, every time.