The government has announced a range of support for businesses and individuals over the next few months.
Fuel Duty - the 5p Fuel Duty cut will be extended until 31 December 2026.
Red diesel - the duty rate on red diesel will be cut from 10.18p per litre to 6.48p per litre from 15 June until 31 December 2026.
Heavy Goods Vehicle (HGV) Vehicle Excise Duty (VED) - over the next 12 months, when hauliers renew their HGV VED, they will pay £1 only.
Approved Mileage Allowance Payments (AMAPs), Mileage Allowance Relief (MAR) and self-employed mileage
The government has announced increases to AMAPs, MAR and self-employed mileage rates, which will be backdated to 6 April 2026. The changes are:
- an increase to 55 per mile for the first 10,000 miles
- remain at 25p per mile for mile 10,001 and over.
Employers are able to increase the amount they reimburse their employees for business mileage, in line with the new rates. The change is retrospective to 6 April 2026.
Employers who reimbursed their employees above the old rates, where tax and National Insurance was deducted, may need to re-run their payroll for April and May to account for the increase to AMAPs.
If an employee is reimbursed less than the new AMAPs rate, they can claim tax relief for their job expenses. HMRC’s job expenses tax relief claim forms are currently being updated with the new mileage rates.
Self-employed customers will be able to use the new rates in their 2026/27 return.
For more information on these changes, please visit the relevant guidance on the GOV.UK website.
Temporary reduced rate of VAT for children's meals, tickets and family attractions
In addition, the government is introducing a temporary reduced rate of VAT for children's meals, tickets and family attractions.
HMRC guidance explains that a temporary reduced rate of VAT of 5% will apply to:
- certain supplies of children’s meals
- children’s admission to theatres, cinemas, concerts, exhibitions and shows
- all admission tickets to attractions suitable for families with children.
The reduced rate will apply from 25 June 2026 to 1 September 2026 (inclusive).
For more information on these changes, please visit the relevant Revenue and Customs Brief guidance on the GOV.UK website.
Free bus travel for children and targeted food tariff cuts
Every child aged five to 15 in England will be able to travel free on participating local buses throughout August, with unlimited journeys, no registration required and at no cost to families.
For more information on these changes, please visit the relevant GOV.UK news update page.
Of course, there is no guarantee that employers will pay staff the higher mileage rates or that venues will pass on the VAT cut in ticket prices, so it remains to see what real benefit these changes will have to individuals hard hit by price rises.