No11 also made permanent the 55p tax-free mileage rate for the first 10,000 business miles, while increasing the rate for additional miles to 35p from April 2027. Downing Street is also tripling the tax-free trading allowance to £3,000, measures officials say will provide further support for the self-employed.
Conversely, Ms Reeves had already raided taxes on van owners in her 2024 Budget by reclassifying many pick-up trucks as company cars rather than commercial vans. This raised the ceiling for flat benefit-in-kind rates from 20 per cent to 37 per cent, based on CO2 emissions. It saw some van owners’ tax bills quadruple.
Edmund King, President of the AA, urged the Government to cut fuel duty by a further 5p, warning higher fuel costs also feed into the price of transporting goods and running businesses.
Daniela Hathorn, Senior Market Analyst of Capital.com, told Britain’s News Channel: “The decision to maintain the 5p fuel-duty discount offers some immediate relief, particularly with energy prices remaining elevated.
“However, freezing fuel duty does not necessarily mean cheaper petrol or diesel. Global oil prices, refining costs and retailer margins continue to influence what motorists pay at the pump. For businesses operating fleets of vehicles, sustained high fuel prices can quickly erode margins, potentially forcing them to raise prices for customers.”
Mr Healey’s statement came against the backdrop of his pledges in The Sun in September, where he recognised Britain’s tradesmen and self-employed have had it “tough”.