Whilst many Brits are getting ready to welcome in the new year, drivers have been warned of a number of new changes they must learn before getting behind the wheel in 2025.

With 2025 being the first full year that Labour will be in charge for 15 years, the new Government has planned a range of alterations, with some leaving motorists out of pocket.

One of the most significant is the latest Advisory Fuel Rates – the figures that state how much employees can get reimbursed for business travel in their company cars.

Set by HM Revenue and Customs and valid for the first quarter of 2025, all rates for petrol and diesel cars have been reduced by 1p per mile, spanning from a rate of 11p for those driving a diesel car with an engine of under 1,600cc to 23p for employees with a petrol car with a powertrain of over 2,000cc.

Employees who use a vehicle powered by liquid petroleum gas (LPG) or electric were issued the same advisory rates, with EV drivers receiving 7p per mile for the next three months.

The Government is also in the process of changing their Zero-Emission Vehicle (ZEV) Mandate in 2025 in a bid to offer more support to the automotive industry.

Announced after both Ford and Stellantis’ decision to cut jobs within the UK, it is likely that a ban on new petrol and diesel models by 2030 will remain.

However, the strict quotas that are set to fine car companies a collective £1.8 billion in 2024 may be scrapped or changed to a deficit model.

One change that could help to support drivers during 2025 is the sudden reform on insurance costs, with the Government reviewing the personal injury discount rate in England and Wales.

Mohammad Khan, Head of General Insurance at PwC UK, noting it could reduce the bill by around £50 per year.

He added: “This change is good news for drivers as it will further intensify the competitiveness of the motor insurance market. As for the insurance companies, they had expected a change of this scale and will already be pricing it into their pricing.”

Finally, heavy goods vehicle (HGV) drivers planning to go abroad from December 31 2024 will need to make sure a certain device is fitted to prevent fines.

From New Year’s Eve, all HGVs heading outside of the UK will need to have a full or transitional smart tachograph 2 retrofitted, which offers better compatibility with modern technology.

HGVs that are only used within the UK can still use a standard analogue or digital tachograph without breaking the law.