Drivers demand urgent law changes in October Budget as Rachel Reeves prepares tax raid on motorists

The MP for Leeds West and Pudsey has already warned Britons that "tough decisions" will need to be made, with many speculating that the Budget could target fuel duty, car tax and insurance concerns.

The British Vehicle Rental and Leasing Association has called on the Government to avoid making "painful" decisions for motorists and instead support millions of drivers across the UK.

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Ahead of the Budget, the Association has outlined a number of key "asks" for the Chancellor and HM Treasury to consider, following input from its members.

The BVRLA stated: "Against the backdrop of a challenging economic climate, commentators are anticipating targeted tax rises and cuts to certain services.

"Even with that challenging backdrop, the Budget will be expected to include announcements and commitments that underpin the Government’s ambitions regarding growth and sustainability."

One of the main conditions is for the Government to stabilise the electric vehicle market by introducing temporary emergency measures targeted at the used EV market.

Potential measures include a campaign of myth-busting and reducing VAT on the sale of used electric vehicles and targeted grants for used EVs.

The BVRLA has also called for a zero per cent Benefit-in-Kind rate for used electric vehicles that are driven as part of a salary sacrifice scheme.

At present, HMRC has BiK rates for electric vehicles set at two per cent, although this will rise by one per cent per year until 2027/28.

There have long been calls for the Government to outline any changes that could be coming to the system of Benefit-in-Kind to help those making use of the scheme know when their prices will rise, especially with longer contracts.

Another ask from the BVRLA is for greater measures to meet the Zero Emission Vehicle mandate and the 2035 deadline to phase out the sale of new petrol and diesel vehicles.

While the Labour Government is still planning to make changes to reinstate the original 2030 deadline, the majority of manufacturers and organisations are still working towards removing petrol and diesel vehicles from their fleet by the middle of the next decade.

This calls on a commitment to keep the Benefit-in-Kind rate low for electric vehicles to give drivers the confidence to make the switch. It also calls for the Expensive Car Supplement to be rebalanced, as well as an expansion of the salary sacrifice scheme to the civil service.

Further suggestions include an expanded Plug-in Van Grant, a new grant for used vans, and improved charging for light commercial vehicles, as well as the need to discuss future priorities like road pricing and steady-state BiK.

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The BVRLA outlined that the suggestions put forward had been developed with "extensive input" from its members.

The Association added that feedback from members had formed the basis of interactions with HM Treasury and other Government departments in recent months.

Members have been encouraged by the BVRLA to write to their MP using an online tool to gather support for the demands, as well as a used electric vehicle campaign.