Six-point checklist issued by AFP in response to 2026 Budget

Fleets are then advised to refresh their vehicle replacement strategy to align with Euro 7 timelines and manufacturer supply constraints, and to prepare for electric Vehicle Excise Duty (eVED) through mileage capture, telematics integration and driver communication.

Finally, the AFP recommends assessing the total cost of ownership impacts of plug-in hybrid electric vehicles (PHEVs) versus battery electric vehicles (BEVs) under Euro 7.

Dale Eynon, AFP government affairs and policy lead, said: “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.

“We are also pleased to see plans are in place to introduce lower cost, lower power charging to make EV operation more affordable, although we are awaiting more details about exactly how this will work.”

Beyond this point, Dale said, the good news was limited, with only short-term relief in areas such as the fuel duty freeze, despite the fact that many AFP members faced rising costs.

“Heavy fleets will similarly benefit from extended duty and VED relief, which offers some breathing space but elsewhere, the picture is less encouraging, with little to ease the wider economic pressures that vehicle operators are facing and some potential unintended effects.

“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.”

Regulatory certainty was provided through confirmation alongside the Budget of UK adoption of Euro 7 standards, which should help forward ordering and replacement cycles. However, this would weaken future PHEV viability, given expected CO₂ uplifts and eVED costs.

Dale said: “The Budget document shows no changes to the latest VED proposals, which is disappointing given the AFP has raised several key issues. We hope to see more flexibility emerge but, in the meantime, vehicle operators should prepare. Mileage reporting systems will become increasingly important while telematics capability and odometer verification processes should be examined before the scheme’s 2028 arrival.”

AFP Budget 2026 checklist

1. Examine the implications of the new 2030-31 benefit-in-kind tables, looking at the impact across fleet operations, especially the increased viability of salary sacrifice schemes.
2. Update 2027–28 financial forecasts to reflect fuel duty and HGV VED extensions.
3. Review grey fleet policy in light of higher AMAP rates and consider managed fleet alternatives.
4. Refresh vehicle replacement strategy to align with Euro 7 timelines and manufacturer supply constraints.
5. Begin eVED readiness planning (mileage capture, telematics integration, driver communication).
6. Assess total cost of ownership impacts for PHEVs vs BEVs under Euro 7 and future taxation.

About the Association of Fleet Professionals

The Association of Fleet Professionals is the organisation for fleet professionals.

It brings together ACFO, a non-profit making organisation representing the interests of businesses which operate cars and vans as part of their normal commercial activities; and ICFM (the Institute of Car Fleet Management), the UK’s only independent not-for-profit organisation dedicated to furthering the education, recognising the achievements, and advancing the profession of car and light commercial fleet management.