Fuel duty to increase for first time since April 2010

Reeves to ensure 'wealthiest contribute most' in tax reforms

Fuel duty is set to increase for the first time in 16 years, with the current 5p per litre cut extended only until September 2026 before being reversed through a staggered approach.
From April 2027, the Government plans to increase fuel duty rates annually in line with the Retail Price Index (RPI) measure of inflation.
To address declining fuel duty revenue from the shift to electric vehicles (EVs), a new 3p per mile tax will be introduced for battery electric cars from April 2028.
Motoring groups, including the AA and RAC, welcomed the short-term extension of the fuel duty cut but warned drivers of impending hikes and criticised the new EV tax.
The OBR predicts the new EV tax will reduce electric car sales by around 440,000, with industry experts describing the government's EV transition strategy as 'muddled and confusing'.

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