In this week’s Enews, the Chancellor has announced the date for her Autumn Budget. There is also the change in advisory fuel rates for electric cars and this quarter’s rates for petrol, diesel and LPG update you on.
Autumn Budget to be delivered on 26 November
The Autumn Budget will be delivered on 26 November by the Chancellor of the Exchequer, HM Treasury has announced.
The Office for Budget Responsibility’s latest outlook for the economy and public finances will be released on the same day.
The Budget outlines the government’s plans for raising or lowering taxes and sets out its spending commitments for health, schools, police and other public services.
Chancellor of the Exchequer, Rachel Reeves said: ‘Britain’s economy isn’t broken. But I know it’s not working well enough for working people. Bills are high. Getting ahead feels tougher. You put more in, get less out. That has to change.
‘We’ve got huge potential – world-leading brands, dynamic industries, brilliant universities, and a skilled workforce. We’re a global hub for trade.
‘Fixing the foundations has been my mission this past year … but I’m not satisfied. There’s more to do. Cost of living pressures are still real.
‘And we must bring inflation and borrowing costs down by keeping a tight grip on day-to-day spending through our non-negotiable fiscal rules. It’s only by doing this can we afford to do the things we want to do.
‘If renewal is our mission and growth are our challenge. Investment and reform are our tools. The tools to building an economy that works for you – and rewards you.’
Internet link: GOV.UK
HMRC splits advisory fuel rates for electric cars
HMRC has split fuel advisory rates for electric cars depending on where drivers charge their company cars due to the price discrepancy between home and public chargers.
From 1 September 2025, the single rate for fully electric cars will be abolished and replaced with two different rates reflecting whether a car is charged at home or on a public charger.
The rate will be 8 pence per mile for home charging and 14 pence per mile for public charging. This will replace the current universal rate of 7 pence per mile.
These rates will be reviewed quarterly in line with petrol and diesel advisory fuel rates.
HMRC said:
‘The ‘Domestic electricity cost per kilowatt-hour’ is the Department for Energy Security and Net Zero annually published figure, uprated with the latest estimate of electricity prices from the Office for National Statistics.
‘The ‘slow or fast public charge cost per kilowatt-hour’ is the Zapmap public charging price index monthly published figure for slow or fast chargers (charging speed less than 50 kilowatts), uprated with the latest estimate of electricity prices from the Office for National Statistics.
‘A higher amount than the advisory rates can be used as long as you can show that the fuel cost per mile is higher. Therefore, if the public charger used is higher in cost per mile than the new advisory rate introduced for public charging, a higher rate can be used as long as you can show the cost per mile is higher.’
Internet link: GOV.UK AFR
Advisory fuel rates for company cars
New company car advisory fuel rates have been published and took effect from 1 September 2025.
The guidance states: ‘you can use the previous rates for up to one month from the date the new rates apply’. The rates only apply to employees using a company car.
The advisory fuel rates for journeys undertaken on or after 1 September 2025 are:
| Engine size | Petrol |
| 1400cc or less | 12p |
| 1401cc – 2000cc | 14p |
| Over 2000cc | 22p |
| Engine size | Diesel |
| 1600cc or less | 12p |
| 1601cc – 2000cc | 13p |
| Over 2000cc | 18p |
| Engine size | LPG |
| 1400cc or less | 11p |
| 1401cc – 2000cc | 13p |
| Over 2000cc | 21p |
HMRC guidance states that the rates only apply when you either:
- reimburse employees for business travel in their company cars
- require employees to repay the cost of fuel used for private travel.
You must not use these rates in any other circumstances.
The Advisory Electricity Rate for fully electric cars is below. Electricity is not a fuel for car fuel benefit purposes.
| Advisory Electricity Rate | |
| Home Charger | 8p |
| Public Charger | 14p |
If you would like to discuss your company car policy, please contact us.
Internet link: GOV.UK AFR
