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Treasury Confirms 5p Fuel Duty Cut Ends in 2026 as Budget Weighs Motor Tax Options

Officials confirm the 5p fuel duty cut ends in March 2026 with final rates decided at the Autumn Budget.

Overview

  • Dan Tomlinson told MPs the Chancellor will set fuel duty in the context of the public finances when the Budget is delivered on 26 November.
  • An HM Treasury spokesperson said the government has no plans to introduce road pricing.
  • Media reports and analysts suggest ending the 15‑year fuel duty freeze is the most likely near‑term change, though no decision has been announced.
  • RSM UK estimates a £2.7 billion gap and proposes an EV‑focused levy or a pay‑per‑mile system as longer‑term options, which remain speculative.
  • The Resolution Foundation has urged a broader overhaul of car taxes, while motoring analysts note pay‑per‑mile could shift costs depending on how much people drive.