The 2025 Autumn Budget delivered a raft of tax changes designed to raise £26bn by 2029–30, with major implications for drivers, fleets, and businesses across the UK. From a new mileage tax for electric vehicles to a continued freeze on fuel duty, the announcements highlight how the government plans to balance revenues as the shift to low-emission transport accelerates.
Here’s a full breakdown of the key updates so far, what they mean, and how they could impact your operating costs.
New mileage tax for electric vehicles from 2028
One of the headline announcements is the introduction of a new mileage-based tax for electric vehicles (EVs) and plug-in hybrids.
From April 2028, drivers will pay:
£0.03 per mile for battery electric cars
£0.15 per mile for plug-in hybrid cars
This rate will increase each year in line with CPI inflation.
The OBR notes that this measure is expected to raise £1.4bn by 2029–30 and will operate at “around half the fuel duty rate paid by petrol drivers” when introduced.
This marks a significant shift in how EVs are taxed, signalling a long-term move towards usage-based charges as the number of zero-emission vehicles on UK roads continues to rise.
Changes to the Motability Scheme
The Chancellor confirmed that the Motability scheme will remove luxury vehicles from its list of eligible options.
The aim is to “bring the scheme back to its original purpose” - providing cost-effective, accessible lease options for disabled people, rather than subsidising higher-end, premium models.
100% Business relief for electric chargepoints
In a major boost for businesses investing in EV infrastructure, the government has announced 100% business rates relief for electric vehicle chargepoints.
This means companies installing EV chargers at depots, offices, or business premises can benefit from significant savings, helping offset infrastructure costs and supporting long-term electrification plans.
For fleet operators already planning their EV rollout, this relief could make charging installation far more affordable, especially for multi-site operations.
Fuel duty frozen until September 2026
An OBR document, released slightly early, confirms that fuel duty will remain frozen at its current rate until September 2026.
This provides short-term stability for businesses operating petrol and diesel fleets, especially during a period of higher inflation and cost pressures. However, the OBR also notes “staged increases” planned from 2026 onwards, meaning long-term fuel costs are still expected to rise.
New fuel finder: Real-time price updates to help drivers save
Another notable change announced in the Autumn Budget is the introduction of a new national Fuel Finder, designed to bring greater transparency to pump prices across the UK. Under this scheme, petrol stations will be required to publish their prices in real time, giving drivers clearer visibility on where to find the cheapest fuel nearby.
According to the government, this move is expected to save households around £40 a year by helping them avoid higher-cost forecourts and plan refuelling more efficiently.
For businesses running fleets, this added transparency could make route planning simpler and reduce unnecessary fuel spend, especially when combined with tools like fuel cards that already offer fixed or discounted pricing.
Inflation revised higher for 2025–26
Inflation forecasts have been adjusted:
2025: Now expected at 3.5%, up from the 3.2% forecast in March.
2026: Increased to 2.5%, up from 2.1%.
2027–2029: Outlook remains steady at around 2%.
Higher inflation means business running costs - including fuel, vehicle maintenance, and insurance - may remain elevated for longer than expected.
How the Budget plans to raise £26bn by 2029–30
The Autumn Budget includes a broad range of tax measures across payroll, pensions, corporate taxation, and mobility. Here’s the breakdown of how the government plans to raise £26bn:
Major contributors
Freezing personal tax and employer NIC thresholds (from 2028): +£8bn.
Taxing salary-sacrificed pension contributions: +£4.7bn.
Increasing dividend, property and savings tax rates by 2 points: +£2.1bn.
Reducing the writing down allowance in corporation tax: +£1.5bn.
Mileage tax on EVs and plug-in hybrids: +£1.4bn.
Changes to gambling taxation: +£1.1bn.
Reduced CGT relief on employee ownership trust disposals: +£0.9bn.
“Mansion tax” council tax surcharge on £2m+ properties: +£0.4bn.
Tax admin, compliance and debt collection measures: +£2.3bn.
Offsetting measures
Fuel duty: Extended freeze for five months, followed by staged increases from 2026.
Cost: £2.4bn next year, then £0.9bn each year.
What this means for fleets and businesses
With EV taxation set to change, fuel duty frozen (for now), and wider tax reforms coming down the line, fleet operators and businesses will need to plan ahead:
EV running costs will rise from 2028. Monitoring mileage and choosing the right vehicle mix will matter more than ever.
Fuel card savings remain essential as diesel and petrol price pressures are expected to increase again from 2026.
Higher inflation keeps cost control firmly on the agenda for fleets and employers.
As more Budget details are released throughout the day, we’ll continue to update this guide.
The Autumn Budget brings a mix of certainty, challenge and change for drivers, businesses and fleet operators. With a new mileage tax on EVs, a continued freeze on fuel duty, and updated reliefs for electric infrastructure, the landscape is shifting, and planning ahead has never been more important.
