Important new driving laws for 2026 – Simply Business
5-minute read
Written by
Zach Hayward-Jones
The rules of the road are constantly evolving in the UK. Whether it’s tweaks to taxation or new layers of regulation – there’s always something for motorists to look out for.
Find out the most important new rules for drivers in 2026 and how you can prepare for them.
The long-standing 5p cut to fuel duty is being phased out from September 2026. The current fuel duty rate of 52.95 pence a litre will gradually increase until it’s in line with inflation from April 2027.
So motorists should anticipate a higher price at the pump towards the end of the year.
The government’s new Road Safety Strategy has proposed several changes to reduce motor accidents in the UK.
The headline measures in the proposal are:
RAC’s road safety spokesperson, Rod Dennis, said this about the proposed changes: “The strategy addresses many areas we know drivers are concerned about, including drink and drug-driving, ‘ghost’ plates and dazzling headlights. The inclusion of a commitment to consult on the use of alcohol interlocks for convicted drink-drivers – which are internationally proven to save lives – is particularly encouraging, especially given the extent to which drivers are supportive of their use.”
Changes to how electric vehicles will be taxed in future were announced in the Autumn Budget, as the government considers short and long-term plans for EV taxation.
The most immediate change is to the expensive car supplement (ECS), which is a tax on cars with a list price of more than £40,000. From April 2026, EVs will be in a higher threshold of £50,000 before they need to pay ECS.
Many EV owners will also need to start paying the basic rate of road tax (£195) in 2026. EV owners started to pay road tax in April 2025, but were offered a lower rate (£10) in the first year.
The standard rate of congestion charges (for all vehicles) has increased to £18 a day if paid on or before the day of travel. And it costs £21 a day if it’s paid within three days after travel.
But EVs are no longer exempt from congestion charges. The Cleaner Vehicle Discount ended on 25 December 2025 – instead EVs get a 25 per cent discount on the standard rate. Electric vans and HGVs can get 50 per cent off congestion charges if they’re registered on Auto Pay.
Company car tax is changing in 2026. From April, there will be a one per cent increase on the standard tax rate, plus further increases for certain vehicle types.
Electric vehicles will be subject to a four per cent BiK rate from 6 April 2026 (currently three per cent). And the most high-emission vehicles BiK rates will rise up to 37 per cent.
With new automated vehicle legislation and Waymo announcing its plans to bring its self-driving taxis to London – self-driving cars are pulling up to the UK soon.
Lilian Greenwood, a Department for Transport minister, had this to say about the potential of automated vehicles: “Self-driving vehicles are one of the most exciting opportunities to improve transport for so many people, especially those in rural areas or unable to drive. We want to work with passengers and industry to make this new form of transport safe and accessible, as we take our next steps towards adoption.”
The UK will adopt the Euro 7 emissions standards on all new cars and vans from 2026. This means car producers will move on from the Euro 6 guidelines the UK has been following since 2015.
The new regulations will align the UK’s production standards with the EU. Buses, and heavy goods vehicles will eventually follow, but there’s currently no date for the rollout.
As a part of the government’s Plan for Change, it’s looking to offer a digital alternative to all paper or card credentials (like a driving licence) by 2027. But the first versions of the digital driving licence are set to launch in 2026.
The new licences won’t be mandatory though, and your physical license is still valid and important to keep safe.
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Written by
Zach Hayward-Jones
Zach Hayward-Jones is a Copywriter at Simply Business, with seven years of writing experience across entertainment, insurance, and financial services. With a keen interest in issues affecting the hospitality and construction sector, Zach focuses on news relevant to small business owners. Covering industry updates, regulatory changes, and practical guides. Connect with Zach on LinkedIn.
This content is for general, informational purposes only and is not intended to provide legal, tax, accounting, or financial advice. Please obtain expert advice from industry-specific professionals who may better understand your business’s needs. Read our full disclaimer
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