The UK’s Autumn Budget sets out several measures that will directly affect road transport operators over the coming years, offering short-term stability on fuel costs but signalling wider increases to duty, HGV taxes, wages and business rates from 2026 onwards.
Below is a breakdown of the key developments and what they mean for hauliers.
Fuel duty freeze until September 2026, staged increases afterwards
Fuel duty remains frozen until 1 September 2026, continuing the freeze introduced in 2022. After that, the government will unwind the 5p-per-litre cut in three stages:
- +1p on 1 September 2026
- +2p on 1 December 2026
- +2p on 1 March 2027
From April 2027, fuel duty will again rise in line with the Retail Prices Index (RPI).
The freeze offers short-term certainty, but the staged increases in 2026–27 will raise diesel costs during a period of sustained financial pressure for operators. Transport companies on fixed-rate or long-term contracts may find it difficult to absorb the increases.
HGV Levy and VED to rise with inflation from April 2026
From April 2026, both the HGV Levy and Vehicle Excise Duty (VED) for heavy goods vehicles will increase in line with inflation.
This means that annual standing costs for each truck will rise, adding pressure at a time when insolvencies in the haulage sector remain elevated.
Higher wage and payroll costs
The Budget confirms increases to the National Living Wage and National Minimum Wage from April 2026.
Separately, from April 2029, employer and employee National Insurance will apply to pension contributions made via salary sacrifice above £2,000 per year.
This means that most transport businesses will face higher labour costs, particularly in entry-level and operational roles. Wage increases are also likely to create knock-on pressure to maintain pay structures across depots and fleets.
New business rates multiplier for large properties
From April 2026, properties with a rateable value above £500,000 will fall under a new higher business rates multiplier, set 2.8p above the standard rate.
This means that large distribution centres, hubs and urban depots could see property taxes rise. For operators relying on significant square footage, this may increase overhead costs and affect warehousing and last-mile pricing.
Capital allowances for operators using leased assets
A new 40% First Year Allowance will be available from January 2026 for firms unable to access full expensing, including companies operating leased assets.
This means that operators leasing trailers or equipment may benefit from additional tax relief when reinvesting in fleet or depot infrastructure.
Fuel Finder to launch nationwide in early 2026
The Budget confirms the rollout of Fuel Finder, requiring all fuel retailers to publish live pump prices.
Greater price transparency could help fleet managers plan fuelling more efficiently and identify regional savings, especially for operators travelling across multiple areas.
Zero-emission vehicle measures
From 2028, a new mileage-based tax will apply to electric cars, though electric vans and electric HGVs will initially be exempt.
Additional measures include:
- £200 million for public, workplace and home charging infrastructure.
- 100% business rates relief for 10 years on EV chargers installed by businesses.
Good news is that no new tax liabilities are introduced for electric trucks at this stage. Charging infrastructure support and business rates relief may help operators planning depot electrification or public charging projects.
Energy and infrastructure
The Budget includes £150 off household energy bills from April 2026 and sets out reforms intended to reduce reliance on volatile gas prices.
Further transport-relevant commitments include continued funding for the Lower Thames Crossing, and long-term investment in local road maintenance.
Energy measures have limited direct effect, but infrastructure funding may improve road conditions and reduce congestion over time.
Industry warns Budget changes could push up logistics costs
Transport associations say the Budget’s long-term measures will increase costs across the supply chain.
The Road Haulage Association (RHA) described the reversal of the fuel duty cut as a major challenge for smaller operators and highlighted the combined impact of rising wages, pension-related National Insurance changes and higher business rates for large sites.
The RHA welcomed the new capital allowances and additional funding for planning reform, road maintenance and the Lower Thames Crossing.
Logistics UK warned that higher fuel duty risks creating an inflationary effect because logistics costs are embedded in all goods transported across the country. The organisation said logistics businesses already contribute £5.5 billion a year in fuel duty and urged the government to reconsider the scheduled rises.
Both organisations welcomed the continuation of the fuel duty freeze until September 2026 and supported the rollout of the Fuel Finder scheme next year, but stressed that operators face sustained cost pressures in the second half of the decade.
Low-value import relief to be scrapped; consultation open
Alongside the Budget, the government confirmed that it will remove customs duty relief on low-value imports under £135, meaning these consignments will in future be subject to customs duty under a new regime for Low Value Imports (LVIs). The reforms are to be implemented by March 2029 at the latest, following detailed technical work with industry.
According to the Treasury’s consultation paper Reforming the customs treatment of low value imports into the United Kingdom, the current relief will be replaced with new LVI customs arrangements that make overseas sellers and online marketplaces responsible for declaring and paying customs duty on these shipments, typically on a quarterly basis. The document also proposes new item-level data requirements, potential simplified “tariff buckets” for low-value goods, and even the possibility of an additional administration fee to cover HMRC and Border Force costs.
While these changes primarily target cross-border e-commerce and parcel traffic, they are likely to affect logistics operators handling high volumes of small consignments, including express road carriers and hauliers serving parcel hubs. Operators may ultimately see higher customs-related costs and more complex data and IT requirements for LVI traffic.
A public consultation on the proposals is now open until 23:59 on 6 March 2026, and HMRC will host an online stakeholder event at 14:00 on Thursday 4 December to explain the plans and how to respond. BIFA is encouraging its members to review the consultation and submit feedback.
