My initial reaction to the speech was that there wasn’t anything for fleets to take note of, apart from the deferral of the fuel duty increase, changes to capital allowances and an increase to AMAPs.
However, the Red Book included more detail, which we’ve highlighted below and expanded on in the online Budget Summary.
BiK tax (cars): in April 2030 rates will rise by 1% across all vehicle bands.
BiK tax (vans & fuel): scale charges will increase in line with inflation from 6 April 2027.
Capital allowances: the main-rate first year allowance will rise from 40% to 50% from January 2027, but to compensate, writing down allowances will be reduced from 14% to 12% from April 2027.
Fuel duty: the 5ppl temporary cut introduced in 2022, which was due to be reversed from January 2027, will be extended for a further six months to 1 July 2027.
Electric Vehicle Excise Duty (“eVED”): the 3ppm duty to be applied to zero-emission cars, and the 1.5ppm rate for plug-in hybrid cars remain on course to be launched from April 2028, but key implementation measures have been announced.
Approved Mileage Allowance Payments (“AMAPs”): the temporarily increased 55ppm rate (up from 45p) for the first 10,000 business miles will be made permanent, and augmented by an increased rate of 35ppm above 10,000 miles (up from 25p).
Vehicle Excise Duty (“VED”): from 1 April 2027 VED rates for cars, vans and motorcycles will be increased in line with inflation.
Public EV Charging support: from Spring 2027 funding of £100m will be provided over two years to reduce the cost of local, lower-powered public charging, whilst a new taskforce considers how to enable drivers to use their domestic electricity tariff at local, lower-powered public charge points.
And finally…
…let’s not overlook the salary sacrifice red herring! Whilst the Red Book included a heading referring to ULEV salary sacrifice reform, no change was proposed, and HM Treasury later confirmed to the BVRLA that the reference was an administrative error; surely that confirmation will be welcomed by the automotive sector?
Anyway, please feel free to get in touch if there's anything in the Budget that you'd like to discuss.
