UK Budget 2026: Fuel duty, EV charging and business mileage changes
What UK drivers, commuters, self-employed motorists and fleet operators should know — with confirmed announcements separated from future legislation and proposals.
Source: HM Treasury, Budget 2026. Updated 3 November 2026.
UK motoring policy | Key dates and figures
Fuel duty relief extended to 30 June 2027
Announced rate above 10,000 qualifying business miles from 6 April 2027
Target for local EV charging support; delivery details pending
Budget announcements, not a guarantee that all future measures are already law. See details and official sources below.
⛽ Fuel duty freeze
Confirmed Budget decision; legislation to implement announced
The temporary 5p-per-litre fuel duty cut and the duty freeze are extended through 30 June 2027. The previously planned January 2027 increase is cancelled. Fuel duty is scheduled to rise from 1 July 2027, including an inflation-linked adjustment.
Decision impact: drivers and fleets can plan for the continued reduced duty rate until July; this is not an additional 5p pump-price reduction.
🔌 Lower-cost local EV charging
Announced funding; benefit starts spring 2027
£100 million over two years will support lower prices at local, lower-powered public EV chargers, especially for people without home charging. Government estimates around £150 annual savings for an average eligible on-street EV charging user.
Decision impact: compare home and public charging access when evaluating EV ownership. Actual eligibility, location and savings may vary.
🚙 Business mileage allowance
Confirmed Budget policy
For qualifying journeys in your own car or van, the approved rates are 55p per mile for the first 10,000 qualifying business miles (made permanent from 6 April 2026) and 35p per mile above 10,000 miles from 6 April 2027, up from 25p. Employers can choose how much to reimburse. For 12,000 qualifying miles, the approved amount rises from £6,000 in 2026–27 to £6,200 in 2027–28.
Decision impact: employees, self-employed drivers and fleet expense teams should review mileage reimbursement policies and qualifying business miles.
🚚 HGVs and red diesel
Confirmed Budget decision; future duty changes scheduled
The red diesel duty reduction of 3.7p per litre is extended to 30 June 2027. The HGV vehicle excise duty holiday is also maintained to 1 July 2027.
Decision impact: relevant logistics and fleet operators can incorporate the extended relief into budgets.
Important dates for UK motorists
| Date | What changes | Status |
|---|---|---|
| 28 October 2026 | Budget 2026 motoring measures announced | Official announcement |
| 1 January – 30 June 2027 | 5p fuel duty cut extended | Budget decision; implementing legislation announced |
| Spring 2027 | Targeted lower-powered public EV charging support begins | Funding announced; delivery details to follow |
| 6 April 2027 | 35p/mile rate applies above 10,000 qualifying business miles | Budget policy |
| 1 July 2027 | Fuel duty increase and RPI uprating scheduled | Planned future change |
Accuracy note: These are government Budget announcements as at 31 October 2026, not a claim that every future measure has already become law. Fuel duty is one part of pump prices; wholesale prices, retailer margins and VAT also affect what you pay. The government is exploring a domestic-tariff-porting scheme for public EV chargers, but that idea is a proposal under exploration, not a currently available discount.
How to use this update
For commuting and fleet planning, model the current fuel-duty relief through June 2027 and a possible higher duty burden from July. EV buyers without a driveway should compare nearby public charging rates rather than assuming all public chargers qualify for the future support. Businesses should review employee mileage policies against the announced 2027 rate change.
Primary sources
HMRC — mileage rates for employees using their own vehicles
HM Treasury — Budget 2026 (28 October 2026), section 4.4
HM Treasury — Cutting electric vehicle charging costs (28 October 2026)