2024 Autumn Budget: what it will mean for motorists

The new Government’s first budget will take place on 30 October 2024, and rumours are rife that it will penalise drivers heavily. In this article we'll look at the additional costs drivers might incur, and practical ways to save on fuel.

One tactic the Chancellor, Rachel Reeves, may use to raise money is to remove the 5p per litre discount on fuel duty that was introduced by then-Chancellor Rishi Sunak in 2022.

Such a move would put the fuel tax rate back up to 58p per litre, taking the average cost of a litre of petrol up to 145.61p and diesel up to 150.35p. For a driver covering the UK’s average of 7400 miles per year, the increase in fuel duty would equate to an additional average cost of £43 to run a petrol car and £39 a diesel.  

Combined with the fuel duty freeze, which has been in place since 2011, these two policies have cost the Treasury £100bn in the last 13 years, according to analysis from the Social Market Foundation (SMF). It says scrapping them would save £27bn over the next five years. 

Motoring organisation, the RAC, is in favour of ditching the discount on the grounds that fuel suppliers haven’t been passing it on at the pumps. Simon Williams, head of policy at the RAC, said: "We’ve long been saying that drivers haven’t been benefitting from the current discount due to much higher-than-average retailer margins."

On the other hand, the AA is calling for a continuation in the freeze. Edmund King, AA president, said: “Scrapping the 5p freeze in fuel duty would hurt everyone, not just drivers. Everything from the price of food in supermarkets to the delivery of social care within our communities are impacted by pump prices, and an unnecessary hike in fuel duty could make things worse."

Will road pricing replace VED? 

The introduction of road pricing is another idea under discussion. It would mean those who cover the most miles pay the most. It will be an additional charge for motorists who already pay to drive in regional clean air zones (CAZs) or inside the London ultra-low emission zone (ULEZ), where daily fees already apply. 

It is seen as an alternative to road tax (VED), revenue from which will continue to decrease by up to £13 billion a year by 2030 as more drivers switch to electric cars (EVs).

Although EV owners will have to pay car tax from April 2025, it’s still likely to raise less than was generated from petrol and diesel cars. EV owners will pay the lowest £10 rate for the first year and then the standard £190 a year after that. The shortfall is expected to be exacerbated by the Government’s plan to bring the ban on the sale of new non-electric cars back forward to 2030. 

While VED is a blanket fee payable by all drivers, road pricing could be introduced only on the busiest sections of road and at peak hours. This would mean it targets high-mileage drivers and those who need to get to work during rush hour, but not those who do shift work or unsociable hours.

How to save money on fuel

For now, it looks like driving is going to get more expensive for the majority. But if you can’t reduce your costs by going electric, you can minimise the damage those miles will do to your bank balance by making some simple changes. Here are our top tips.

Before you set off:  

Search for the cheapest fuel

A quick and easy way to find out which service station has the lowest fuel prices is to check out those in your local area on a price comparison app like petrolprices.com. As well as showing you up-to-date pricing information for around 8500 forecourts across the UK, it also shows short-term discounts and promotional deals that are available.

Remember that driving out of your way to find the cheapest fuel can be a false economy.

Share the journey

Sharing the journey with another person can reap big savings, so ask at work to see if you can share the commute with a colleague, or register for a service such as liftshare.com to be paired up with people looking to do the same journey as you. 

Pick the most efficient route

The way you get to places makes a big difference to your fuel economy. For example, a longer route could actually cut your fuel bill if it includes less stop-start traffic, so it's worth checking traffic apps, such as Waze, before you head off. You an also enter details of an upcoming drive into Google Maps and it will show you a number of route options so you can pick the shortest or the one with the least hold-ups. You may also be able to go into the settings and select the most fuel efficient route. It may signify the most efficient route with a green leaf icon. 

Apps such as these show live traffic, so can automatically reroute you around the worst congestion. You can access Apple Maps, Google Maps and Waze through your smartphone — if it is securely held in a mount — or through your car's infotainment screen if you have a vehicle compatible with Apple Carplay or Android Auto.

Log your fuel use

Generally speaking, cars are more efficient at constant speeds, away from stop-start traffic, but there can be exceptions. There are a number of fuel use apps, such as Fuelly and Fuel.io which allow you to track your journeys, your mileage and how much you're getting from the gallon.

Clear out the clutter

The lighter your car is, the less fuel it'll use. So, while you might want to carry a shovel in winter, leave it in the garage in summer. And if the kids aren't travelling with you, don't take their buggy.

Go streamlined

If you're not using the carrying capacity of external kit like roof boxes or bike racks, take them off the car; the extra wind resistance these items create has a surprisingly profound effect on fuel consumption, as do open windows and sunroofs. Simply by removing roof bars, you could see fuel economy improvements of around 10%.

Pump up the tyres

Under-inflated tyres create drag. If you keep yours correctly inflated, you could use up to 25% less fuel.

Buy oil, save fuel

Dirty oil doesn't lubricate engine parts as well as clean oil. And poorly-maintained engines run less efficiently, so it's essential to keep up the servicing regime. Changing your car's oil in accordance with the manufacturer's recommendations is vital to preventing mechanical failure.

Driving tips to save fuel

Keep moving

Your car uses most fuel getting away from a standstill, so try to anticipate the road ahead, keeping a good distance from the traffic in front. That way, you'll need to slow down — and speed up — less. And when you do have to stop, remember to pull away gently to reduce the strain on the engine.

Shift up sooner

Always try to change up to the next gear as soon as possible, because the fewer revs the engine is doing at any given speed, the more miles it'll do to the gallon. Just ensure you don't upshift too quickly, because the engine will have to work harder, using more fuel in the process.

It's also worth bearing in mind that many modern cars shut off their fuel injectors when you're coasting in gear, so staying in gear for as long as possible when you're slowing down reduces fuel consumption.

Slash your speed

The slower you're going in top gear, the more miles you'll do per gallon. In fact, if you cruise at 60mph rather than 90mph on the motorway you'll use roughly 50% less fuel.

Switching off your car's air-con in winter can cost you more than it saves, because if it isn't used regularly the seals dry out and you'll face a bill to get it working again. However, it is worth switching off systems such the rear demister and heated seats when you don't need them, because they all make the engine work harder to provide the power for them.

Reduce idling time

Most modern cars will automatically switch off the engine when you come to a halt. But if yours doesn't (and you're stationary for more than a few minutes), do it yourself. Just remember that it's not advisable if you have a tired car battery.

For all the latest reviews, advice and new car deals, sign up to the What Car? newsletter here

Read more: Most and least efficient cars >>