Budget 2026

On Wednesday 28 October, we saw Chancellor John Healey deliver his first budget since joining Andy Burnham’s government.

Framed as a Budget that provides “breathing space today and fresh hope for Britain’s future”, the Chancellor today set out a package of measures aimed at supporting households now while addressing longer-term challenges, including energy, growth and defence.

Autumn Budget 2026 – our reaction

Alan Bastey, Head of Sustainability and Consultancy, runs through the Budget’s key talking points and explores their impact on fleets across the UK.

Key takeaways for your fleet

• The Government has provided greater long-term certainty on company car tax, which will rise gradually over time, increasing to 10% for zero-emission vehicles in 2030/31.
• Fuel duty will remain frozen, with the existing 5p-per-litre reduction retained, providing continued relief for motorists and businesses.
• The temporary increase in Approved Mileage Allowance Payment (AMAP) from 45p to 55p will be made permanent, while the rate for mileage above 10,000 miles will increase from 25p to 35p per mile.
• Vehicle Excise Duty (VED) rates for cars, vans and motorcycles will increase in line with the Retail Prices Index (RPI) from 1 April 2027. This represents a £10 increase in the standard rate, taking it to £210.
• The Expensive Car Supplement will remain unchanged at £440, with no amendments announced to the current scheme.

• Van Benefit Charge and Van and Car Fuel Benefit Charge will increase in line with CPI from 6 April 2027.
• The government has announced £100 million of funding to support the rollout of local, lower-powered public EV charging infrastructure from Spring 2027.
• From 1 November 2026, the Government will introduce legislation confirming that electricity supplied through public and workplace EV charging will be subject to 20% VAT and will not be treated as domestic electricity use.
• Capital allowances on company cars will see the main writing down allowance reduce from 14% to 12%, while the First-Year Allowance (FYA) will increase from 40% to 50%.
• The government has said it will publish the results of the ZEV mandate consultation by the end of 2026.

The government has also released its independent review into the cost of charging EVs on the public charging network. It has five recommendations including piloting a solution that could enable drivers to charge in public near their homes using their domestic energy tariff.

Written by: Zenith Editorial & Insights Team
Last reviewed: October 2026