Government to make 55p mileage rate permanent for first 10,000 miles ahead of Budget

Mixed · 2The Government announced ahead of Wednesday's Budget that the 55p-per-mile tax-free rate for work driving will be made permanent for the first 10,000 business miles a year. 1 2 Mixed · 2For miles beyond 10,000, the rate will rise from 25p to 35p; the Mirror's table dates this rise from 6 April 2027. 1 2 Left · 1The Mirror reports that rates for motorcycles (24p) and bikes (20p) are not changing. 1

Mixed · 2The Government expects around three million employees and self-employed people to benefit. The Express names nurses, care workers and builders as examples. 1 2 Mixed · 2The Treasury estimates the combined measures are worth £120 a year in additional tax savings for someone driving 6,000 business miles, and up to £300 for 15,000 miles. The Mirror says this is compared with rates before April 2026. 1 2 Mixed · 2The Express says the 55p rate was introduced earlier this year, replacing 45p. The Mirror recalls that the previous increase was unveiled in May 2026, when Martin Lewis called it "really important". 2 1

Right · 1The Express adds that 55p is not paid automatically on every mile. Employers choose how much to reimburse, and workers paid less than the approved rate may claim tax relief from HMRC on the difference. The rate covers eligible work journeys, not ordinary commuting. 2 Mixed · 2The mileage change is one of five measures. The others are scrapping tariffs on over 100 products, including baked beans, chocolate and gherkins, which the Treasury says will save households about £21 a year on food; extending parental pay to more than 150,000 parents, including self-employed fathers; replacing the carer's allowance cliff edge with a £1-for-£1 taper; and hundreds of extra Post Office drop boxes. 1 2 Left · 1Prime Minister Andy Burnham said the changes would "make life a little easier" and that the Budget would "go further". Chancellor John Healey said they were "a small part" of efforts to give families "breathing space", citing higher costs from conflict in the Middle East and Europe. 1

Mixed · 2The coverage differs on timing: the Mirror says the measures were revealed on Tuesday, while the Express says they were announced on Monday 26 October. 1 2