Chancellor John Healey has announced changes in the Autumn Budget that will affect around three million motorists in the UK, including a rise in business mileage rates and an extension of the fuel duty cut.
Mileage Rate Increase for Business Drivers
One of the key announcements from Mr Healey concerns drivers who rely on their vehicles for work. The Chancellor is locking in the 55p per mile rate for the first 10,000 business miles and increasing the rate above 10,000 miles from 25p to 35p per mile.
This is expected to impact around three million drivers. It is the biggest increase for 15 years, meaning workers who rely on their vehicle for their job can receive greater support with the costs of fuel, servicing and other motoring expenses.
Tax Savings and Fuel Duty Extension
These changes will provide £120 a year in additional tax savings for a worker doing 6,000 business miles, with someone driving 15,000 business miles receiving up to £300 in additional tax savings.
Another major announcement from Mr Healey was the extension of the fuel duty cut. The cut was first introduced by the Conservative government in spring 2022 to freeze fuel duty at 52.95p per litre for both petrol and diesel. It was originally due to end on December 31.
However, Mr Healey extended the fuel duty cut until July 2027 due to the war in the Middle East still driving high fuel prices.
