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Fleet industry news round-up December

31st December 2025

Industry wrap-up:

As we wrap up the first year of our Fleet Industry News Round-Up series, this article highlights some of the key developments shaping the industry. Topics covered include rising motor insurance premiums, tyre safety for drivers returning to work after the holidays, cross-pavement charging, and the proposed pence-per-mile tax for electric vehicles (EVs). Fleets are being invited to share their views in the Government’s consultation on the proposed EV excise duty, and driver experiences are needed to help shape the future of fair access to home charging. Finally, we set out a list of key dates and legislative changes expected in 2026.

Drivers without driveways are being asked to share their experiences of accessing affordable home charging. The Electric Vehicle Association England (EVA England) has launched a national survey (Opens in new window) designed to capture real-world feedback that will help inform future efforts to improve fair access to charging for all drivers. The initiative also aims to tackle the widening ‘charging divide’ between those who can charge at home and those who rely solely on public charging.

Baroness Pidgeon recently secured two key government commitments as part of the Planning and Infrastructure Bill, including a formal consultation on expanding permitted development rights for cross-pavement charging solutions, and a pledge for Ministers to encourage local authorities to use their highways contractors to install these technologies - helping to reduce costs and delays for residents.

The Government has also launched a £25m cross-pavement charging fund to increase the number of authorities trialling these solutions.

Drivers are being urged to check their tyres before returning to work after the holidays, following more than 14,000 tyre-related breakdowns attended by the AA between Boxing Day and 6 January last year.

Regular checks of tyre pressure, condition and tread can prevent many common issues, and even a brief inspection can help avoid a costly breakdown.

The AA also advises that the locking wheel nut key should be kept in a safe place in the vehicle - not at home - as misplaced keys can delay repairs and increase recovery costs.

Explore our driver factsheets library for information on how to carry out:

Despite recent reductions in pricing, motor insurance premiums are expected to increase by an average of 3% in 2026. This change could add around £15 per policy, partly reversing the projected 10% fall expected in 2025.

UK motor insurers are expected to break even in 2025 and move into losses in 2026, as claims inflation rises and premiums fluctuate.

The weaker outlook for 2026 is driven by continued claims inflation, higher repair costs linked to increasingly complex vehicle technology, and downward pressure on premiums as insurers cut rates to remain competitive.

Additionally, the market is forecast to record a net combined ratio (NCR) of 101% in 2025, deteriorating to 111% in 2026.

In practical terms, this means insurers are expected to pay out £1.11 in claims and expenses for every £1 collected in premiums in 2026, compared with 97 pence in 2024.

The UK Government has launched a consultation on a new pence-per-mile tax for electric vehicles (EVs), following announcements in the Autumn Budget.

Under the proposals, zero-emission cars would attract a new charge of 3 pence per mile (ppm), in addition to existing road taxes, from April 2028, while plug-in hybrid vehicles (PHEVs) would be charged at 1.5 ppm. These rates would increase annually in line with the Consumer Prices Index (CPI).

The Association of Fleet Professionals (AFP) is urging fleets to take part in the consultation to highlight potential concerns before implementation. Initial public feedback on the pence-per-mile concept has been mixed, and there are concerns it could act as a barrier to EV adoption if not carefully designed.

To help fleets stay ahead of industry changes, here are some important dates and regulatory updates to note:

1 January 2026

  • Changes to FCA rules

  • Congestion Charge exemption updates take effect

31 March 2026

  • End of 100% first-year capital allowance changes

  • Closure of certain government employer grants for onsite charging

April 2026

  • Mandatory payrolling of benefits

  • Incremental increases in benefit-in-kind (BIK)

  • Updates to Vehicle Excise Duty (VED) and Expensive Car Tax

  • End of VED exemptions for electric vehicles

6 October 2026

  • Changes to Employee Car Ownership Schemes

We look forward to keeping you up to date with developments in the fleet industry throughout 2026.

Catch up on our fleet industry news round-ups

Revisit previous articles covering key developments across the fleet industry.

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