British motorists are entering Budget week fearful that the cost of running a car will rise further, with a survey revealing strong opposition to potential tax changes and growing reluctance to commit to vehicle purchases before the Chancellor sets out his plans.
Research by Carwow, based on a poll of more than 1,000 motorists, found that 28 per cent wanted the Government to delay or scrap the proposed pay-per-mile tax on electric vehicles (EVs), scheduled to come into force in April 2028. The measure topped drivers’ Budget wish list, ahead of an extension to the fuel duty freeze, cited by 26 per cent.
The findings highlight the challenge ministers face as they balance public finances, the transition to electric motoring, and pressure on household budgets.
The 5p-a-litre fuel duty cut was introduced as a temporary 12-month measure in March 2022, but successive governments have extended it. In May 2026, the Government confirmed that the freeze would continue until the end of the year.
Asked whether fuel duty should remain at its current level or the 5p cut should end as planned in January, 60 per cent of respondents wanted the reduction to continue.
Electric vehicle incentives also featured prominently. Almost one in five motorists, or 17 per cent, said their top Budget priority was a more generous Electric Car Grant.
Although only 9 per cent initially prioritised a reduction in VAT on public charging, a more targeted question revealed stronger support for equalising charging costs. Some 62 per cent said VAT on public charging should be brought into line with the 5 per cent rate applied to home charging, rather than remaining at 20 per cent.
The results suggest that drivers’ concerns extend beyond the price of petrol and diesel to the broader economics of choosing and running an electric vehicle.
Uncertainty is already influencing consumer behaviour. Almost two-thirds of those surveyed, 61 per cent, expected the Budget to make motoring less affordable.
Among respondents who had planned to change their car, 63 per cent said they were postponing their decision until after the fiscal statement. Some 22 per cent were delaying buying a vehicle, 3 per cent were holding off selling, and 38 per cent were delaying both transactions.
Iain Reid, global content director at Carwow, said: “Drivers are clearly worried about the cost of motoring, and the Budget is adding to that uncertainty. From fuel duty to the proposed pay per mile tax on EVs, motorists want reassurance that the cost of getting around won’t keep rising.
“With nearly two-thirds of prospective car buyers pausing their decisions, it highlights the significant impact that uncertainty has on consumer confidence.”
Reid said clarity and consistency would be crucial to helping motorists make informed decisions, particularly those considering switching to electric vehicles.
The figures underline the pressure on the Chancellor to provide certainty for drivers and the automotive market. Whatever the Budget delivers, the survey suggests that the prospect of higher motoring costs is already affecting household decisions before any new measures have been announced.
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