Fleet policy changes set the tone in December 2025, as focus started to move towards sustainable funding, infrastructure investment, and regulatory reforms. These announcements reinforce a shift that will influence fleet costs, operations, and long-term electrification plans.
Mileage-based EV tax from April 2028
From 2028, electric vehicle drivers will pay a mileage-based tax of 3p per mile (1.5p for hybrid vehicles), alongside Vehicle Excise Duty. This revenue will be used to double road maintenance spending, and will provide an additional £200m for charging infrastructure.
For fleets, this represents a shift in EV running costs, and will make accurate mileage tracking, route optimisation, and vehicle utilisation more important than ever before. A Government consultation on the implementation of the tax is open until 18 March, and will give fleet operators the opportunity to influence how the scheme is introduced.
More on mileage-based tax
Electric Car Grant extended to 2030
An extra £1.3bn has been allocated to the Electric Car grant, with the scheme being extended until March 2030. For consumers, this support helps to lower the upfront cost of new EVs, and helps to normalise EV adoption, supporting long-term electrification at scale.
Congestion Charge changes from January 2026
The daily London Congestion Charge will rise from £15 to £18, with a new tiered structure introduced for electric vehicles. For fleets operating in and around London, this will increase the importance of reviewing journey necessity, vehicle allocation, and route planning to manage the potential of rising access costs.
Regulatory changes for electric vans
The Government has committed to legislating changes to MOTs, tachographs, driver hours, and speed limiters for zero-emission vehicles weighing between 3.5 and 4.25 tonnes. This removes a long-standing barrier and allows fleets to adopt heavier electric vans without sacrificing payload, productivity, or compliance, and supports further decarbonisation of commercial vehicles.
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