Autumn Budget 2025: The government has announced that the temporary 5p cut in fuel duty will remain until August 2026.
Chancellor of the Exchequer, Rachel Reeves, announced that fuel duty rates will then gradually increase to March 2022 levels by 1p from 1 September 2026, 2p from 1 December 2026, and 2p from 1 March 2027.
The planned inflation increase for 2026-27 will not take place, with the government uprating fuel duty rates by retail prices index (RPI) from April 2027.
Paul Holland, managing director for UK/ANZ Fleet at Corpay, including UK brand, Allstar, said: ”The Autumn Budget has landed and it is every bit as tough as expected. Higher taxes, reduced growth forecasts and a new mileage tax for electric vehicles all point in the same direction. Costs are rising again and the businesses keeping the country moving are being asked to absorb even more pressure.
“Nothing announced today makes life easier for fleets or small businesses. Fuel duty relief is still absent, with only a five-month freeze before staged increases begin from 2026.”
