{"id":662161,"date":"2026-06-28T03:56:35","date_gmt":"2026-06-28T03:56:35","guid":{"rendered":"https:\/\/www.newsbeep.com\/uk\/662161\/"},"modified":"2026-06-28T03:56:35","modified_gmt":"2026-06-28T03:56:35","slug":"rachel-reeves-confirms-new-10p-per-mile-change","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/uk\/662161\/","title":{"rendered":"Rachel Reeves confirms new 10p per mile change"},"content":{"rendered":"

Rachel Reeves<\/a> has confirmed that motorists will be affected by a 10p-per-mile update this summer as part of a historic car tax<\/a> change. The Chancellor has confirmed that workers can take advantage of a 10p per mile increase in tax\u2011free mileage rates this year, saving petrol<\/a> and diesel<\/a> drivers up to \u00a3120.<\/p>\n

Labour is set to increase tax-free per-mile rates from 45p to 55p for the first 10,000 miles in what\u2019s been described as the largest ever uprating. The Treasury has stressed the move will benefit up to two million employees, with one million self-employed staff also set to benefit in a massive boost for cash-strapped Britons. Approved Mileage Allowance Payments are limits for reimbursing staff who use their own personal vehicle for journeys undertaken through work.<\/p>\n

Early estimates suggest the new plan will save a worker covering 6,000 business miles per year around \u00a3120. The new update has been backdated to April 2026, with the Treasury confirming that the move has been introduced to ease the cost of living.<\/a><\/p>\n

Announcing the policy last month, Rachel Reeves<\/a> said: \u201cThe war in Iran isn\u2019t our war, but one we will need to respond to, and my priority is keeping prices down for households and businesses. That\u2019s why we\u2019re freezing fuel duty, increasing the mileage rate for the first time in 15 years and slashed VAT temporarily this Summer to help reduce the cost of days out.\u201d<\/p>\n

Mileage allowance rates have been frozen<\/a> at 45p per mile for the first 10,000 miles in every tax year since 2011, meaning this is the first update in 15 years. The new rate will only apply to cars and vans, with motorbikes and bicycles paying a flat rate of 24p and 20p.<\/p>\n

Meanwhile, Money Saving Expert<\/a> has explained that all other mileage rates will remain the same. But the specialists revealed that the Government has said that these will be reviewed at the next Budget.<\/p>\n

Money Saving Expert Martin Lewis was thrilled at the announcement, admitting that he believes the new rate would be useful for a lot of road users.<\/p>\n

He previously told the BBC<\/a>: \u201cThis has long been a complaint I’ve got, so I think the change from 45p a mile to 55p a mile backdated to April 2026, so backdated a couple of months, is really going to be quite useful for people. It’s only for the first 10,000 miles, there’s a lower rate after that.\u201d<\/p>\n","protected":false},"excerpt":{"rendered":"Rachel Reeves has confirmed that motorists will be affected by a 10p-per-mile update this summer as part of…\n","protected":false},"author":2,"featured_media":662162,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5],"tags":[84,682,59,222011,681,1445,147620,222010,222009,56,54,55,680],"class_list":["post-662161","post","type-post","status-publish","format-standard","has-post-thumbnail","category-business","tag-business","tag-diesel","tag-gb","tag-mileage-tax-rates","tag-petrol","tag-rachel-reeves","tag-rachel-reeves-car-tax","tag-rachel-reeves-diesel-tax","tag-rachel-reeves-petrol-tax","tag-uk","tag-united-kingdom","tag-unitedkingdom","tag-vehicle-excise-duty-ved"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/posts\/662161","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/comments?post=662161"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/posts\/662161\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/media\/662162"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/media?parent=662161"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/categories?post=662161"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/tags?post=662161"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}