Autumn Forecast 2025: Key Changes for Fleets
The Chancellor, Rachel Reeves, delivered her Autumn Budget on 26 November 2025, which culminated in a series of measures that will impact fleets and company car drivers over the next few years.
The threshold for the Expensive Car Supplement – an additional Vehicle Excise Duty charge – will increase from £40,000 to £50,000 in April 2026 for zero-emission cars.
A new Mileage Tax will be introduced for battery electric vehicles (3 pence per mile) and plug-in hybrid vehicles (1.5 pence per mile) from April 2028, increasing annually with the consumer price index.
A temporary Benefit in Kind (Company Car Tax) tax easement applies retrospectively from 1 January 2025 to April 2028 to prevent company car drivers’ tax increasing significantly due to new emissions standards.
The Electric Car Grant will be extended until 2029/30, with an additional £1.3 billion in Government funding to support the rollout of public chargers.
Fuel Duty will be frozen at the current rate of 52.95 pence per litre until September 2026, extending the temporary 5 pence per litre cut for a further five months.
The Government will delay changes to Benefit in Kind rules for Employee Car Ownership Schemes until April 2030.
A total of £200 million of new funding has been allocated to support the EV Charging Infrastructure, including support for the installation of home and workplace chargepoints.
These, and other key points that apply from 1 April 2026, are detailed in the full fleet sector report.