It predicts the 0.7% share of GDP that fuel duty today contributes will fall to a 0.1% share by 2050-51, when “more than 90% of cars on the road are projected to be fully electric”.
Live petrol prices
New laws are coming into force that will force petrol stations to display fuel prices in real time. This will be part of a new online platform, said Reeves.
She explained: “Because I know that changes in wholesale prices are not always passed down to motorists, I’m bring in new rules to mandate petrol station forecourts to show real time price rises through a new fuel finder, empowering drivers to find the cheapest fuel, calling out rip-offs and strengthening competition.”
She predicted that this will save “the average household” around £40 a year, adding: “I know that the cost of travelling to and from work is still too expensive.”
ECOS changes postponed
Planned changes to employee car ownership schemes (ECOS) have been delayed until 2030, Reeves confirmed.
ECOS, operated mainly by car makers and dealers, allows employees to buy brand-new cars at significantly reduced prices, with low monthly repayment bills and little to no interest charged. Usually, after six months or 6000 miles, the employee then sells the car back and replaces it with another under the same terms.
Reeves previously said the government would bring the scheme “into scope of the benefit-in-kind [BIK tax] rules” from 6 April 2026.
She called ECOS a “contrived car ownership scheme” that “means those benefiting don’t pay company car [BIK] tax”.
However, “to allow more time for the sector to prepare for and adapt to this change”, the end of ECOS has been delayed until 6 April 2030.
ECOS accounts for around 100,000 registrations every year – 5% of the annual new car market.
The scheme is considered by the UK’s automotive industry to be a significant incentive for attracting and retaining talent.
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