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Fuel duty cut extended to July 2027 while 3p a mile EV charge stays on track for April 2028
In the Autumn Budget, Chancellor John Healey extended the 5p fuel duty cut until July 2027, keeping duty at 52.95p a litre for petrol and diesel, while the 3p a mile tax on EVs remains scheduled for April 2028. Hippo Leasing says its average business EV lease covers 10,578 miles a year, so the charge would come to around £317 a year, or £26 a month on top of a typical £499 payment. Over the same distance a 45mpg petrol car pays around £566 in fuel duty before VAT, and Hippo reports October enquiries 7% up on last year and 13% up year to date, despite pre-budget surveys suggesting drivers were holding off.
Why it matters
The 2028 pay-per-mile start date gives CPOs and fleet buyers a fixed point to model EV running costs against, and the lease data suggests demand has not stalled. EV drivers would still pay a little over half the fuel duty of a comparable petrol driver, which supports the case for continued charging investment, though the added monthly cost may sharpen price sensitivity at the charger.