AFP issues six-point fleet checklist following Autumn Budget

The Association of Fleet Professionals (AFP) has issued a six-point checklist to help UK fleet operators respond to measures announced in the Autumn Budget 2026, highlighting the implications for vehicle taxation, electric vehicle adoption and fleet operating costs.

The guidance follows the first Budget delivered by Chancellor John Healey under Prime Minister Andy Burnham’s government, which the AFP described as a mixed outcome for the fleet sector.

Among the measures welcomed by the association is the extension of benefit-in-kind (BIK) tax tables to 2030-31, providing greater certainty for company car drivers and fleet managers planning their vehicle strategies.

The AFP said the relatively low taxation of electric vehicles (EVs), with BIK rates rising by just one percentage point to 10% in 2030-31, should continue to support EV uptake and the attractiveness of salary sacrifice schemes.

Dale Eynon, Government Affairs and Policy Lead at the AFP, commented: “This was a mixed Budget for fleets. The certainty offered by the extension to the BIK tables is very much to be welcomed, as is the fact there is only a one percentage point increase to 10% for the 2030-31 tax year.

“Our feeling is that low taxation still plays a key part in enticing drivers into EVs and this remains an attractive rate.”

The association also welcomed proposals for lower-cost, lower-power EV charging, although further details are awaited.

Despite these positive measures, the AFP warned that the Budget offered limited relief from wider cost pressures affecting fleet operators.

Extensions to fuel duty and heavy goods vehicle (HGV) Vehicle Excise Duty (VED) relief will provide some short-term support, but the association raised concerns about potential unintended consequences of higher Approved Mileage Allowance Payment (AMAP) rates.

Eynon said: “For example, increased grey fleet mileage rates could drive more employees to use older, less environmentally friendly cars, something most fleets want to avoid. This situation could strengthen the business case for fleet consolidation and wider EV adoption.”

The AFP also highlighted confirmation of the UK’s adoption of Euro 7 standards, which should provide greater certainty for vehicle replacement planning, although the resulting changes could affect the future cost competitiveness of plug-in hybrid vehicles.

With electric Vehicle Excise Duty (eVED) expected to arrive in 2028, the AFP is encouraging fleet operators to review their mileage reporting systems, telematics capabilities and odometer verification processes.

“The Budget document shows no changes to the latest VED proposals, which is disappointing given the AFP has raised several key issues,” Eynon said.

“We hope to see more flexibility emerge but, in the meantime, vehicle operators should prepare.”

The AFP’s six-point checklist recommends that fleet operators:

Review BIK changes: Examine the implications of tax tables extending to 2030-31, particularly for salary sacrifice schemes.
Update financial forecasts: Reflect fuel duty and HGV VED extensions in 2027-28 budgets.
Reassess grey fleet policies: Consider the impact of higher AMAP rates and the potential benefits of managed fleet alternatives.
Review replacement strategies: Align vehicle procurement with Euro 7 implementation and manufacturer supply constraints.
Prepare for eVED: Develop mileage capture, telematics and driver communication processes ahead of 2028.
Compare vehicle costs: Assess the total cost of ownership of plug-in hybrid and battery electric vehicles under future taxation and Euro 7 requirements.

The AFP said fleet operators should use the additional certainty provided by the Budget to review their longer-term vehicle strategies while preparing for regulatory changes and continuing cost pressures.