The UK's automotive sector is a critical component of its economic framework. This dynamic industry is poised for significant transformations in 2024, steered by regulatory bodies and governmental initiatives. These changes, ranging from environmental policies to technological innovations, are set to reshape the landscape of the UK auto industry, impacting consumers and manufacturers alike.
Here's what's coming up in 2024:
Starting from the 1st of January 2024, manufacturers in the UK are required to ensure that a minimum of 22% of their car sales and 10% of their van sales are fully electric, in accordance with the Zero Emission Vehicle (ZEV) mandate. This initiative is designed to escalate the sales of electric vehicles as a measure to lower emissions. The government is set on gradually increasing these percentages, aiming for at least 80% of cars sold to be electric by 2030 and achieving 100% zero-emission vehicle sales by 2035, aligning with the 2023 ban on the sale of diesel and petrol vehicles.
Automakers failing to meet these specified targets in 2024 will face fines of £15,000 for each car and £9,000 for each van below the target. This regulation is likely to lead to an expanded range of electric vehicle models in the market and potentially more attractive offers to encourage consumer uptake and ensure compliance.
Owners of electric vehicles will enjoy an exemption from vehicle excise duty, paying zero pounds until March 2025. Beginning in the financial year from April 2025 to April 2026, these vehicles will be subject to the minimal tax rate, incurring a charge of £10 for the first year, followed by a standard annual rate of £165. Additionally, electric vehicles will not be required to pay congestion charges in London until December 25th, 2025, extending their exemption period.
The freeze on fuel duty, effective since January 2011 as a measure to counteract inflationary impacts, may come to an end in March 2024. Currently, the standard rate for diesel and petrol is set at 52.95 pence per litre (ppl), as determined by the Office for Budget Responsibility. This rate includes a temporary reduction of 5 ppl, implemented by the government as a relief measure during the cost of living crisis, scheduled to last until the end of March 2024. The upcoming Spring Budget of 2024 is expected to provide further details regarding the government's decision on the continuation or cessation of both the fuel duty freeze and the 5 ppl reduction.
The tax known as Benefit in Kind (BiK), which is applicable to car purchases made through an employer's salary sacrifice scheme, is set to maintain its current rate until 2025. The BiK tax, similar to vehicle excise duty, varies based on the CO2 emissions of the car. Since 2022, there has been no change in BiK rates, and this stability is expected to persist through the financial year 2024-25. However, starting from April 2025, there will be a 1% increase in BiK rates across all tax brackets, which will also include vehicles with zero emissions.
The Driver and Vehicle Standards Agency (DVSA) is contemplating revisions to the eyesight assessment segment of the driving test in 2024. Presently, the ability to read a number plate from a distance of 20 meters is the benchmark for passing this test. However, this approach may undergo modifications. The DVSA is actively engaging with a Medical Panel to redefine the testing methodology, seeking input from drivers and specialists for more effective testing strategies. The agency aims to introduce a more adaptable testing method, including evaluating a driver's vision under various lighting conditions.
In an effort to decrease road accidents and fatalities in London, Transport for London (TfL) will enforce new safety standards for heavy goods vehicles (HGVs) starting in 2024. This includes the implementation of a Direct Vision Standard (DVS) and a corresponding safety permit system. Under this system, HGVs must acquire a safety permit before they can operate in most areas of Greater London. The DVS assigns a star rating to each vehicle, evaluating the driver's field of vision through the cab windows to ensure the safety of other road users.
Effective from the 28th of October, 2024, all lorries weighing over 12 tonnes are required to achieve at least a three-star DVS rating or be equipped with an approved Safe System to enhance safety. Non-compliance with these standards will lead to the issuance of a Penalty Charge Notice (PCN) to the drivers. Moreover, obtaining a safety permit is mandatory for HGVs before they can access and utilize the areas included in the HGV safety permit scheme. This permit is available at no cost, and information regarding the specific areas in Greater London covered by this scheme can be accessed through TfL.
The Cardiff Council is currently engaged in discussions about creating a Congestion Zone within the city, a key component of their new 'transport vision'. While still in the consultation phase, the Council anticipates making a formal decision by the end of 2024. The primary objectives of this initiative are to diminish traffic congestion, enhance air quality, and encourage public transport usage. Ongoing deliberations include decisions on whether the congestion charges would be applicable to both visitors and local residents, and if residents are included, the possibility of offering them discounts similar to those provided to London residents under the ULEZ (Ultra Low Emission Zone) scheme. The Council estimates that the implementation of these congestion charges could take up to five years.
Transport for London (TfL) has been conducting a pilot program for e-scooters used by commuters since June 2021. Collaborating with e-scooter firms like Dott, Lime, and TIER, TfL has been exploring this innovative mode of transportation. Originally set to conclude on the 20th of November, 2022, the trial period was extended to the 31st of May, 2024, to collect additional data. After the program concludes in May 2024, insights and findings from the trial are expected to be shared, along with further information regarding the UK government's future plans for e-scooters on British roads.
The 2024 driving laws and regulations in the UK introduce significant changes that will affect various aspects of your driving experience. Whether you're a car owner, a prospective buyer, a business owner, or simply a daily commuter, these changes will have implications on your life in different ways. Here's a breakdown of what you can expect:
- Electric Vehicle Transition: If you're planning to buy a new car, the push towards electric vehicles (EVs) could be a major factor in your decision. With manufacturers required to sell a minimum percentage of EVs, expect a wider range of electric models and possibly more competitive pricing. If you're an EV owner, enjoy the tax and congestion charge exemptions while they last.
- Changes in Vehicle Tax and Duties: The end of the fuel duty freeze in 2024 might lead to increased costs for petrol and diesel. This could affect your monthly budget if you're driving a conventional vehicle. On the other hand, EV owners will benefit from lower taxes until 2025.
- Safety and Compliance: If you drive or operate heavy goods vehicles (HGVs), the new safety regulations in London will require compliance with the Direct Vision Standard. Ensure your vehicle meets the necessary standards to avoid penalties.
- Congestion Charges and Traffic: If you live in or near Cardiff or frequently travel there, keep an eye on the development of the proposed Congestion Zone. This could affect your commuting costs and patterns. Similarly, changes in congestion charges in London could impact your travel expenses.
- E-Scooter Regulations: The conclusion of the e-scooter trial in May 2024 will bring clarity on the role of e-scooters in urban mobility. If you're an e-scooter user, stay updated on the new rules that may emerge.
- Impact on Drivers' Requirements: The potential changes in the DVSA eyesight test could affect new drivers or those renewing their licenses. Stay informed about the new requirements to ensure you meet the standards.
- Budgeting for Future Car Purchases: With the anticipated increase in electric vehicle offerings and changes in tax rates, planning your future car purchases becomes crucial. Consider the long-term benefits of switching to an electric vehicle, especially with the looming ban on new petrol and diesel car sales.
By understanding how these changes might impact you, you can make more informed decisions and adjustments in your driving habits, vehicle choices, and budgeting. Stay informed and prepared as these new laws and regulations roll out in 2024.
For more information about new driving laws, why not check out our 7 laws you need to know before driving in the snow blog? We also produce a range of weekly blogs on various topics, which can be found in the blog section of our website.
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