The Chancellor delivers the Autumn Budget on 28 October 2026. Several changes for drivers are already confirmed, and there’s speculation about more. Here’s what’s already set, so you can tell the news from the noise when the Budget lands.
In short
Already confirmed: pay-per-mile tax for electric cars (3p a mile) and plug-in hybrids (1.5p a mile) from April 2028, a planned fuel duty rise from January 2027, and company car tax on electric cars rising each year from April 2027. We’ll update this page after the Budget.
Pay-per-mile tax for electric cars
From April 2028, electric cars will pay an Electric Vehicle Excise Duty (eVED) of 3p a mile, and plug-in hybrids 1.5p a mile, on top of normal vehicle tax. The government confirmed the details in July 2026:
- You’ll give your odometer reading and an estimate of your mileage when you renew your vehicle tax.
- The estimate is checked later against official mileage records.
- Electric vans are exempt.
The Budget may give more detail on how it will work, but the rates themselves are already set.
If you’re financing an EV: for someone driving 10,000 miles a year, 3p a mile works out at around £300 a year from 2028. It’s worth including in your running costs, alongside insurance and charging.
Fuel duty
Fuel duty is currently 52.95p a litre. Under current plans, it rises to 55.95p on 1 January 2027, with a further 2p rise in March 2027. Some commentators expect the Chancellor to delay or cancel the January rise, but nothing is confirmed until the Budget.
Company car tax on electric cars
Benefit-in-kind tax on fully electric company cars is already legislated to rise:
| Tax year | Electric company car rate |
|---|---|
| 2026/27 | 4% |
| 2027/28 | 5% |
| 2028/29 | 7% |
| 2029/30 | 9% |
Even at 9%, an electric company car is taxed at a fraction of a typical petrol car. If you’re choosing a company car or a salary sacrifice scheme, these are the rates to plan around.
The expensive car supplement on EVs
Electric cars registered from April 2025 pay vehicle tax, including the expensive car supplement if their list price is over the threshold. That threshold for electric cars rose from £40,000 to £50,000 from 1 April 2026, meaning fewer EVs are affected.
Pickups and vans
We’re not aware of any planned change to the 2025 tax rule that treats most double cab pickups as cars for company car tax and capital allowances. See pickup finance for how that affects business buyers.
What this means if you’re financing a vehicle
- Tax and running costs don’t change your finance payments, but they affect what you can afford overall.
- If you’re choosing between an EV and a petrol car, compare the total cost, including tax, fuel or charging, and insurance, not just the monthly payment.
- If you’re buying through a business, check the tax position with your accountant.
We’ll update this page after the Budget on 28 October.
Sources: Electrive on eVED, July 2026, Carwow Budget preview, Fleet World on the expensive car supplement.