What does the 2024 UK Autumn budget mean for drivers and P+B customers?

Earlier today, Chancellor of the Exchequer Rachel Reeves announced the contents of the 2024 Autumn budget. Some major changes were set out, including many that will affect business owners and drivers.

What the changes mean for you

Like many people, we were disappointed to see an increase in National Insurance (NI) contributions paid by employers, rising by 1.2% to 15% by April 2025, adding additional payroll costs for employers.

These changes will negatively affects small to medium businesses and entrepreneurs who contribute greatly to the UK economy. Pike and Bambridge are fortunate to support hundreds of businesses and business owners who we see work tirelessly every day, and are given very little gratitude and support.

The Prime Minister recently defined “working people” as “people who earn their living, rely on our services, and don’t really have the ability to write a cheque when they get into trouble.”, which was one of the many different definitions given by Labour and its MPs.

“We want to support the take up of electric vehicles. So, I will maintain the incentives for electric vehicles in company car tax from 2028 and increase the differential between fully electric and other vehicles in the first year rates of Vehicle Excise Duty from April 2025.

“These measures will raise around £400million by the end of the forecast period.”

If you’ve ever started a business, you’ll recognise the concerns of maintaining financial security for both you and your staff. Whilst everyone should be contributing, it’s a shame that the UK Government is suggesting it should separate those who contribute greatly to the economy from others.

For those employers who have enrolled their business in our EV Salary Sacrifice Scheme, you’ll be pleased to know the cost of the increased NI contributions will be slightly offset if the individual employee is enrolled in the scheme, as their gross salary is reduced.

On a more positive note, we were pleased to see the government reference and maintain the tax incentives on Electric Vehicles, as well as vow to continue supporting the switch to cleaner, greener mobility. This is great news for the many business owners who have, or are considering an EV for themselves or their employees through incentives like our EV Salary Sacrifice Scheme. We just hope the broader tax rises we see won’t result in the UK taking a step back in what is a crucial part of the transition to Net Zero.

We were also pleased to see the 5p cap on Fuel Duty remain until 2025, despite strong rumours of its reversal.

The new company car tax bands

With the confirmation of EV incentives staying in place as we head into 2025, we now have a complete understanding of how the future BIK tax bands (also known as company car tax) will look as we head towards 2030.

The HMRC set the BIK bands based on a vehicle’s CO2 emissions. A separate rate applies to EVs or alternative fuel cars that emit zero CO2 emissions.

If you own a hybrid car that emits less than 50g/km, your rate is based on the zero-emissions range. This is the distance the car can travel solely through its electric motor before its batteries need recharging.

A reminder that these rates apply to vehicles registered after April 6, 2021.

You can view the full budget here.

Keep an eye out for further updates from us following the Budget.