UK Budget 2025: What it Means for Van Drivers
A freeze on fuel duty rates until 2026 is among the headline outcomes from the 2025 Autumn Budget laid out by Chancellor of the Exchequer Rachel Reeves.
However, it represents only a temporary reprieve before staggered reversal of the current 5p-per-litre discount begins in September 2026.
Coming into the Budget, fuel duty was one of the key areas being keenly observed among professionals who rely on a van to carry out their business.
However, it was just one of several announcements that could have a direct impact for businesses on the road. Here is what we know so far:
Fuel Duty Freeze, 5p Discount Extended
Fuel Duty will remain unchanged for at least another ten months when the current 5p-per-litre discount will start to be phased out from 31st August 2026.
The discount was introduced as a temporary measure in March 2022 shortly after Russia’s invasion of Ukraine. It has remained in place but will be reversed in three stages from next year.
There will be a 1p increase from 1st September 2026, before a 2p increase from 1st December 2026 and then again by 2p from 1st March 2027.
In the meantime, the current freeze on fuel duty – which has been in place since 2011 – continues for another year.
Green Light for Fuel Finder
The Budget brought confirmation that the Government’s new Fuel Finder scheme will go live in 2026.
The project is a Government initiative – under advisement from the Competition and Markers Authority (CMA) – that will make it mandatory for petrol stations to report their pricing.
By using the Fuel Finder, it will allow motorists to search and compare nearby petrol stations to get the best deal. It is hoped it will prompt competition among petrol retailers to offer more attractive pricing.
Electric Vans Exempt from EV Excise Duty
One of the big announcements to come from the Budget is the planned implementation of an Electric Vehicle Excise Duty (eVED), which will see drivers of BEVs (Battery Electric Vehicles) pay a rate of 3p per mile from April 2028.
However, eVED will NOT be applied to vans, reasoning ‘the transition to electric power for these vehicle types being currently less advanced than for cars’.
EV Charger Investment
An extra £200m will be invested in improving EV charging infrastructure, with increased funding for workplace charging points.
More Funding for Road Maintenance
The Government is promising more money to tackle poor road maintenance, investment that will be partially funded by the introduction of the pay-per-mile EV tax for cars.
Poor road conditions and potholes are being cited as responsible for a rising number of insurance claims and costly repair work, with the Asphalt Industry Association suggesting it could cost as much as £17bn to fix the UK’s road network.
