Industry Insights - June 2026

June has brought a mix of regulatory change, cost pressures, and policy developments for fleet professionals. From mileage reimbursement changes to electric vehicle (EV) policy shifts and operational risks, here are the key insights from our Consultancy team.

First AMAP increase in 15 years

The UK Government has confirmed an Approved Mileage Allowance Payments (AMAP) increase, raising the rate for the first 10,000 business miles from 45p to 55p per mile. The change is backdated to April 2026.

While this change will undoubtedly be welcomed by employees using their own vehicles, it introduces some challenges for fleet managers.

Fuel duty increases delayed

The government has delayed the planned 1p per litre fuel duty increase from September 2026 until “the end of the year”, offering temporary relief for operators.

The temporary 5p per litre fuel duty cut, first introduced in March 2022, were due to be unwound in stages, with increases of 1p in September 2026, 2p in December 2026 and a 2p in March 2027.

The September and December increases have now been deferred and are expected to take effect from 1 January 2027 (a combined 3p increase), while the final 2p increase in March 2027 is expected to proceed as planned.

Fleet managers should use this extended period of lower fuel duty to reassess fuel strategies, including route optimisation, alternative fuels, and EV transition planning.

HGV VED Holiday

The UK Government announced a temporary 12-month Vehicle Excise Duty (VED) holiday for heavy goods vehicles (HGVs) reducing VED to just £1 upon renewal. The scheme runs from 1 July 2026 through to 30 June 2027 to help operators mitigate rising fuel costs.

Eligibility:

• Qualifying Vehicles: the £1 rate applies to tax classes TC01 (HGV), TC02 (Trailer HGV), TC16 (Small Islands), TC23 (Combined Transport), and TC57 (Special Types).
• HGV Levy: the separate HGV Road User Levy remains unaffected and must still be paid.
• Potential Savings: operators typically save £600-£912 depending on the weight and size of the vehicle.

EV charging costs under review

The Office for Zero Emission Vehicles (OZEV) has launched a comprehensive review into public EV charging costs, with findings expected later this year.

Scope of the review:

• Analyse the full public charging ecosystem (including on-street, destination, and en-route charging facilities such as motorway services and rapid/ultra-rapid chargers)
• Compare the cost of charging to fuelling a petrol and diesel cars and vans
• Identification of actions to reduce costs

While the review will consider a range of cost drivers and potential interventions, it will not make recommendations on changes to tax policy, meaning areas such as VAT on public charging are not expected to be addressed within this review.

Regulatory changes unlocking electric van adoption

A significant regulatory shift came into effect on 1 June 2026, removing key barriers impacting heavier electric vans (3.5–4.25 tonnes).

Key changes:

• Vehicles move from HGV-style testing to Class 7 MOT rules
• First MOT now required after three years, not one
• Removal of tachograph requirements and distance limits
• Alignment with standard van operating rules

This is a major win for the industry and supports wider adoption of electric vans by improving operational flexibility and reducing compliance burden.

However, operators should note:

• Tyre requirements increase to 1.6mm tread depth
• Existing vehicles transition to the new regime automatically

Additionally, from 1 July 2026, LCVs over 2.5 tonnes used for cross-border transport must be fitted with second-generation smart tachographs.