The Association of Fleet Professionals (AFP) has called for the Government to provide clarity on the per-mile tax on electric vehicles (EVs) and for a further extension to the freeze on fuel duty.
It warned that the scheme, set to start in 2028, could cause hesitation from fleets and private EV buyers.
The AFP said that the end of the fuel duty freeze next year is ‘unwelcome’ for fleets.
Paul Hollick (pictured), chair at the AFP, said: “This is a Budget with several points of considerable interest for fleets, both in the short and longer term.
“The most immediate news is that fuel duty remains frozen only until September 2026, when it will begin to rise in stages.
“This is probably unexpected and definitely unwelcome at a time when fleet spending is under pressure.
“While we welcome the idea of a national fuel finder that will make lower prices easier to access, we strongly urge the Chancellor to rethink.
“Of interest in the longer term is the introduction of pence per mile EV road charging, planned for April 2028.
“This idea has been mooted ever since fleets started adopting electric cars in large numbers and was widely trailed in the press ahead of the Budget.
“What is needed now is a conversation across the fleet sector about what we want from such a scheme in terms of its timetable and implementation – a dialogue where we expect the AFP to take a central role.
“Initially, our main concern is that it shouldn’t arrive in a form that could hamper electrification or cause any hesitation among potential business and private EV buyers.
“We’re looking at a point two-and-a-half years away, which at least creates time and space for serious discussion.
“It is also welcome that Electric Car Grant funding has been increased quite substantially, a measure presumably designed to counter any fall in EV demand caused by road charging.
“While this scheme is perhaps more directly relevant to retail rather than fleet customers, it’s a positive for everyone if the EV market receives any kind of boost.
“In terms of the wider economy, the Chancellor clearly has a financial hole to fill and has looked to meet that need in ways that are largely designed to be unnoticed by most businesses and households, even while the tax take is increasing.
“How this impacts on consumer and business confidence remains to be seen.”
