Autumn budget: the fleet industry responds

November 26, 2025

The Autumn Budget has landed, prompting fresh questions for fleets on costs, electrification and policy stability. FleetWise has gathered industry reaction to the Chancellor’s measures.

The headline shift is a new EV pay-per-mile charge from April 2028 (3ppm for EVs, 1.5ppm for PHEVs), alongside a freeze on fuel duty until September 2026.

Support packages include £1.3bn for the electric car grant, £100m for public charging and a consultation on cross-pavement access. The luxury VED threshold for EVs rises to £50,000. ECOS reform is pushed back to 2030, while salary sacrifice car schemes are untouched.

First-ever EV pence-per-mile tax

Matt Dale, Director of TZConsultancy, said the new mileage-based tax “has landed at a particularly sensitive moment for the UK’s transition to zero-emission transport.” While intended to restore fairness as fuel duty revenues fall, “the timing risks undermining confidence in a market that still requires support to reach maturity.”

For private drivers, Dale says the cost is modest — “the additional cost will average around £300 annually” — but warns that “perception matters” and the measure “risks fuelling negative sentiment at a time when public confidence is crucial.”

Dale sees the biggest disruption in the used market: “Residual values are already under pressure… adding a new cost burden could further weaken demand for older EVs.” He also cautions that fleets and leasing firms “face the most significant challenges,” with high-mileage users potentially incurring “£600 to £1,000” in extra annual costs and contracts requiring “more precise mileage forecasting.”

Harvey Perkins, Co-founder at HRUX, highlighted the scale of the shift: “The 3ppm rate is significant because it’s the first step towards full road pricing, and the OBR estimate it will prevent over 300,000 EVs from finding a home.” He described the charge as “less welcome,” noting “there will be issues collecting and validating all of that usage data.”

VED threshold uplift and EV incentives

Alongside concerns over the new pence-per-mile charge, Harvey Perkins pointed to measures that offer a more supportive backdrop for electrification. He highlighted the government’s decision to “Increase the definition of an expensive car for VED purposes to £50,000 from April” as “more welcome,” a shift that comes as higher-end luxury cars are set to be removed from the Motability scheme. Perkins also expressed approval for the additional adoption support, noting: “The government is boosting the Electric Car Grant programme with an additional £1.3 billion of funding… to support more consumers to switch.”

ECOS pushed back to 2030

On ECOS reform, Harvey Perkins said: “Pushing the changes to ECOS out to 2030, with further transition arrangements in place then until 2031, is a major about-face.” He added: “This is very welcome news, particular for the OEMs and Dealership Groups.”

He also noted PHEV-related relief: “There will be a temporary benefit in kind easement for PHEVs…to prevent their tax charge increasing significantly due to the new eBIS emissions standards."

Fuel duty freeze and wider cost pressures

Simon Williams, RAC, said: “Drivers will be relieved the Chancellor has decided to keep the 5p duty cut in place for now… But this relief will be very short-lived given the staggered increase from next September.”

Howard Cox, FairFuelUK, argued: “This action more than any other levy will deliver increased consumer spending, new jobs, lower inflation and faster GDP growth.”