The government is introducing a new Vehicle Excise Duty for electric vehicles to address fuel duty revenue losses as drivers transition from petrol and diesel. Motorists will pay based on estimated annual mileage, which will be verified against records from annual MOT tests.

HGV operators will be eligible for a 12-month payment holiday reducing tax to £1 starting 1 July 2026, alongside broader adjustments to vehicle taxation.

The government is canceling major road infrastructure schemes, including the A38 Derby Junctions and A46 Newark Bypass, to reallocate funds to defence.