Every year brings a new set of rules and regulations for our roads. Here's a quick guide to the new laws that could affect you in 2025.
Electric vehicles (EVs) to begin paying car tax from April 2025
From 1 April 2025, owners of EV, zero and low-emission vehicles will be subject to vehicle tax. The change brings EV vehicles in line with petrol and diesel-powered vehicles.
Band A of the Vehicle Excise Duty (VED) system is being removed, meaning vehicles in this band will now be charged.
The new VED bands from 1 April 2025 are:
|
Vehicle Registration Date |
VED Rate (annual) |
|
On or after 1 April 2025 |
£10 |
|
1 April 2017 - 31 March 2025 |
£195 |
|
1 March 2001 - 31 March 2017 |
£20 |
For hybrid drivers, the £10 discount will be removed, and you could be subject to £195 tax if your vehicle was registered on or after 1 April.
Make sure you check the current rates for your vehicle.
Additionally, electric and hydrogen vehicles will be subject to London’s £15 congestion charge from 25 December 2025.
Fuel duty freeze to continue in 2025/26
Announced in the 2024 Autumn budget, the current 5p discount per litre of fuel will remain until 2026. The move has potentially saved drivers an additional 7p per litre of petrol.
This means fuel duty will be kept at 52.95p per litre.
Announcing the budget, Chancellor Rachel Reeves said “there will be no higher taxes at the petrol pumps next year (2025)”.
Fuel Finder scheme introduced
In addition to the fuel duty freeze, the Chancellor announced the launch of the Fuel Finder scheme.
Originally announced in 2024, the scheme will force all fuel retailers to publish information regarding their prices and fuel availability.
Supermarkets and forecourts will be required to update any pricing changes, allowing consumers to see where the best prices are in their area.
The goal is for fuel costs to stay competitive as providers fight to keep customers with lower pricing.
The Labour Government hopes the scheme will be up and running by the end of this year.
Pilot AI speed camera trial success
A collaboration between ten police forces and National Highways will end in March 2025. The trial involved high-tech AI speed cameras, designed to detect driver offences such as using mobile phones while driving and not wearing a seatbelt.
The cameras detect offences and record evidence, then pass this on to Police forces. The Police then decide whether or not to issue a fine.
A two-week trial with Humberside Police recorded 850 offences over just a two-week period, proving the camera’s usefulness.
As a result, drivers have been warned that we’ll see more of these cameras on gantries across the country.
Read our guide to AI speed cameras to discover how they're set to change our roads.
Preparing for self-driving cars
The UK's journey toward integrating self-driving cars took a significant step forward with the enactment of the Automated Vehicles (AV) Act in May 2024. We’ll be hearing more about self-driving vehicles and their trails throughout 2025.
The UK Government hopes that the introduction of self-driving cars will come with a range of benefits, including reducing road collisions, boosting the economy, creating new jobs, enhancing transport quality, facilitating the delivery of essential goods, and increasing connectivity.
The UK aims to join countries like the US and China by allowing autonomous vehicles on the roads by 2026. The initiative aligns with the broader goal of establishing the UK as a leader in artificial intelligence and autonomous mobility.
As the UK prepares for this high-tech shift, the focus remains on making sure that self-driving vehicles meet the highest safety standards before they become a common sight on British roads.
Sources:
Transport Operator - Fuel duty freeze
