Search
The Chancellor has announced a series of measures aimed at supporting businesses and households with rising costs, including changes to Approved Mileage Allowance Payments (AMAP), fuel duty and HGV taxation.
As part of the package, AMAP rates will increase by 10 pence per mile, backdated to April 2026. Under the revised rates, employees using their own vehicle for business travel will be entitled to claim up to 55 pence per mile for the first 10,000 business miles travelled. The rate for mileage above 10,000 miles remains unchanged at 25 pence per mile.
The AMAP rates have remained unchanged since 2011 and the increase is expected to prompt many businesses to review their work travel and grey fleet policies. Members may wish to consider how company car, salary sacrifice, daily rental and car club models can support changing travel requirements.
The Chancellor also confirmed a delay to the planned unwinding of the 5 pence fuel duty cut and announced a 12-month road tax holiday for HGVs.
Further details are available via the Chancellor’s speech.
The BVRLA has urged Government to apply the same logic behind the fuel duty freeze by dropping its plans to introduce a pay-per-mile charge on electric vehicles from 2028: Government Urged to Apply Fuel Duty Thinking to EVs.
