Autumn Budget: 5p Cut In Fuel Duty Extended To July 2027

The UK government has extended the 5p per litre reduction in fuel duty until July next year. 

The cut to the levy had been due to expire on 31 December 2026, but the total duty on fuel will now be held at 52.95p per litre.

Announcing the extension, chancellor John Healey said the decision was down to “the war in the Middle East still driving high fuel prices”.

Mileage rates

The government is also raising its approved mileage rates for business drivers.

The rate for motorists covering less than 10,000 miles per year was temporarily raised from 45p per mile to 55p for the current tax year. This rise is now permanent, said Healey.

Meanwhile, the rate for those covering more than 10,000 miles annually has risen from 25p to 35p.

Domestic electricity

Healey confirmed that the temporary removal of VAT on domestic electricity will be extended until July next year. Although this measure is not directly targeted at motorists, those capable of charging electric vehicles from home stand to make savings as a result.

This is a breaking news story and will be updated with more information in due course