Drivers could soon face a triple whammy of higher upfront car costs, rising petrol and diesel fuel prices, and electric-car disparity under new Prime Minister Andy Burnham's plans, according to an opinion piece by Luke Chillingsworth, Cars Reporter for the Daily Express.
The article questions whether Burnham, who has his eyes set on motorists' pockets, harbors a dislike for drivers. It notes that Britain's 42 million motorists may not see relief after Sir Keir Starmer and Rachel Reeves left Downing Street.
VAT Cut Impact on EV Charging
Burnham's first move as Prime Minister appeared positive, with VAT rates on domestic electricity charges cut. The plan would have a knock-on effect on those charging cars at home, with experts suggesting motorists would likely save £40 per year.
However, the article highlights that eight million households without a driveway, particularly those in major cities relying on public charging stations, will see VAT rates remain unchanged. This effectively widens the price difference between public and private charging from 15% to 20%.
Data suggests that equalising public charging VAT with the 5% domestic rate could have saved high-mileage EV drivers around £389 per year.
Fuel Duty and Petrol Prices
Petrol and diesel owners face rising fuel fees as wholesale oil costs soar. Despite calls to cut VAT rates at the pumps to help cash-strapped road users, no action has been taken so far. Burnham, John Healey, and Labour have not confirmed their plans for fuel duty.
The legal default is for the 5p fuel duty cut to be reversed in 2027, starting in January, when fuel duty will rise by 3p. The article describes this as "madness" as families already struggle with record prices at the pumps.
Potential Tariffs on Chinese Cars
Labour could be about to scrap one of the most cost-effective ways to nab a brand new car. According to The Times, Labour is considering slapping tariffs on Chinese cars due to fears around EU 'Made in Europe' rules.
The new Chinese marque Jaecoo topped the new-car sales list for September. UK customers are voting with their wallets, and China seems to be the direction of travel. The article concludes that motorists look set for a bumpy ride and advises them to start saving.
