On 26 March 2025, Chancellor Rachel Reeves delivered the Spring Statement, setting out the government’s economic strategy amid a backdrop of global uncertainty and revised growth projections.
Economic forecast
Transport specific points
Fuel duty
The fuel duty freeze has been extended for another year, providing continued relief for hauliers and logistics firms facing fuel price volatility.
Road infrastructure investment
The government has pledged £10bn towards road infrastructure improvements, focusing on road upgrades, maintenance, and key connectivity projects, including the West Yorkshire Mass Transit initiative. As part of this investment:
Vehicle Excise Duty (VED)
Despite industry concerns, the Chancellor did not provide clarity on the VED surcharge (commonly referred to as the luxury car tax). This omission raises concerns about confidence in the electric vehicle (EV) market, as businesses and individuals await clearer policies on taxation and incentives.
Business tax & investment
There were no new tax policy announcements in this budget, maintaining the current corporate tax framework.
Labour & HR
More details about the Spring Statement 2025 can be found here. For further information or to discuss how these changes might affect your business, contact Backhouse Jones today.