Chancellor announces an increase in tax free mileage rates

The Government has today announced a series of measures aimed at helping families and businesses with rising costs linked to the ongoing conflict in the Middle East.

Among the announcements is a 10p per mile increase in tax free mileage rates, backdated to April 2026. The change, which follows campaigning and wide support from trade unions will benefit those who rely on their cars for work, including many AEP members.

Several measures were also announced to support children and families with rising costs, including free bus travel across England for children aged 5–15 throughout August, and a temporary cut in VAT from 20% to 5% on some family activities such as cinemas, theatres, zoos, museums and children’s meals over the summer holiday period.

The Government also confirmed there will be no rise in fuel duty this year and announced plans to suspend tariffs on more than 100 supermarket food products in an effort to keep household costs down.