The Autumn Budget 2026 announced several measures aimed at helping drivers with the cost of fuel, business travel and electric vehicle charging. These include extending the temporary fuel duty cut, making tax-free mileage rates more generous and reducing the cost of using some public electric vehicle chargers.
The Government will extend the temporary 5p per litre cut in the main rates of fuel duty until 30 June 2027. The planned increase in line with Retail Prices Index (RPI) inflation will also be delayed until 1 July 2027, when fuel duty rates will return to their pre-cut levels and be increased in line with RPI.
Support is also being increased for people who use their own vehicles for work. The tax-free mileage rate for the first 10,000 business miles in a car or van will remain at 55p per mile on a permanent basis. From 6 April 2027, the rate for business mileage above 10,000 miles will rise from 25p to 35p per mile. The changes will benefit employees who receive mileage payments from their employers and self-employed people who use the simplified mileage rates to calculate their business motoring expenses.
The Budget also includes support for electric vehicle drivers who rely on public charging. From spring 2027, the Government will provide £100 million over two years to reduce the cost of using local, lower-powered public chargers, such as those found on residential streets. This is expected to save drivers who do not have home charging and rely on on-street chargers around £150 a year on average.