Rachel Reeves Confirms 35p Per Mile Rule for Drivers Doing Over 10,000 Miles
Chancellor Rachel Reeves has announced a 10p per mile increase in tax-free mileage rates for individuals who must use their personal vehicles for work purposes. The new rates will see drivers covering under 10,000 miles annually receive 55p per mile, up from 45p, while those exceeding 10,000 miles will now receive 35p per mile, increased from 25p.
The Labour Party Chancellor confirmed the shake-up, which has been welcomed by unions who have campaigned for years for the rate to be raised. Unison general secretary Andrea Egan stated: “This simple measure will provide immediate help for countless frontline workers in public services, particularly at a time when living costs are once again soaring.”
Egan added: “People who need their own cars for work have been left thousands of pounds out of pocket for far too many years. Unison has campaigned hard for this long overdue change. It is good to know the Chancellor has listened to the concerns of staff penalised by frozen rates. However, there is still more to do to ensure no one is losing out, and the union will continue to campaign for further improvements in the coming months.”
Fuel Duty Petition Rejected
The announcement comes as Fair Fuel UK criticised the government for rejecting its fuel duty petition at Whitehall. Howard Cox expressed frustration, saying: “It is beyond sad and close to infantile that despite direct and huge awareness notifications of the 150,000 signatures cut fuel duty petition to the Treasury, we were not allowed to hand it in. It was refused.”
Cox continued: “Instead, the Tory MPs took the petition back to Parliament and handed it into Rachel Reeves’s office. The pathetic extension to keeping fuel duty frozen until the end of the year hides the contempt this Labour Government has for the UK’s 37 million drivers. The announcement that duty will still be increased in 2027 shows how out of touch Starmer’s administration is with the pain of high pump prices on the economy and social cohesion.”
He further noted: “More than 40 countries have reduced filling up costs to help their motorists, but Reeves et al. continue to reign in a clueless state, believing that a sticking plaster will solve the cost of living crisis.”
