HM Treasury announced on 26 October 2026, ahead of the Budget, that the 55p-a-mile tax-free rate for the first 10,000 business miles each year will now be kept for good. It started as a temporary rate announced in May. The rate for miles above 10,000 goes up from 25p to 35p, which the government calls the biggest rise in mileage rates for 15 years. The Treasury's Budget costings say the 35p rate starts on 6 April 2027. The rates cover employees, sole traders and partnerships who use their own car or van for work, and the government expects around 3 million people to benefit. Its own examples: someone driving 6,000 business miles a year gets £120 more in tax savings, and someone driving 15,000 business miles gets up to £300 more. The Budget on 28 October also kept the 5p-a-litre fuel duty cut for six more months, to 1 July 2027, cancelling the plan to add 5p back on in January 2027.