The Chancellor delivered a new statement this week outlining how the Government plans to support both households and businesses.

While this wasn’t a formal budget, there are still important changes and signals that business owners should not ignore particularly around costs, cashflow and planning ahead.

As accountants working closely with local businesses, we monitor these developments carefully, as they often have a direct impact on financial decisions over the months ahead.

Energy and Fuel Costs

Existing fuel duty cuts have been extended
Additional measures have been introduced to help keep energy costs down

These steps are designed to ease operational pressures, particularly for businesses that rely heavily on transport, logistics, or energy-intensive production.

Increased Mileage Allowance

The Chancellor also announced changes to mileage rates:

Up to 10,000 miles: Increased from 45p to 55p per mile
Over 10,000 miles: Increased from 25p to 35p per mile
Backdated to April 2026

In addition, longer-term changes were confirmed:

Electric vehicles (EVs): 3p per mile road tax from April 2028
Plug-in hybrids: 1.5p per mile road tax from April 2028

These updates mean:

Employees can receive greater tax-free mileage reimbursement
Businesses can manage costs more efficiently while supporting staff who use their own vehicles.

Temporary Cost of Living Measures

A number of short-term measures have been introduced to support spending and footfall:

VAT reduced to 5% from 25 June to 1 September 2026 on:

- Tickets for attractions such as theme parks, zoos, museums, cinemas, and theatres

- Children’s meals in restaurants and cafés

Free bus travel for children aged 5 to 15 across England during August

These measures are aimed at:

· Encouraging consumer spending

· Supporting sectors such as hospitality, leisure, and retail

Food, Energy & Consumer Protection

Additional steps to control rising costs include:

Suspension of import tariffs on over 100 food products
Continued fuel duty freeze, helping to stabilise transport costs
New powers for the Competition and Markets Authority (CMA) to address unfair price increases

These changes are intended to reduce pressure on both business costs and consumer pricing.

Industry & Transport Support

Targeted support has also been introduced for key industries:

HGV road tax holiday for 12 months, saving up to £912 per vehicle
Red diesel duty cut by over a third for sectors such as agriculture and rail freight until the end of 2026
Investment through:

- £350m Critical Chemicals Resilience Fund

- £120m Ceramics Sector Fund

These measures are designed to support industries facing high-cost pressures and maintain supply chains.

How This Is Being Funded

The Government has confirmed that this support package will be funded by closing a tax loophole relating to the foreign branch profits exemption, preventing large companies from offsetting overseas losses against UK Corporation Tax.

What This Means for Your Business

While the announcement doesn’t introduce major tax changes, it does highlight a clear direction:

Cost pressures remain a key concern
Support is being targeted at cashflow and operational costs
Businesses need to stay proactive and responsive – explore our tax planning services

Small changes like mileage rates, VAT reductions, and fuel relief can have a meaningful impact if applied correctly.

Small changes like these can add up over time. If you’d like a quick overview of where your business stands, we offer a free 15-minute consultation to help you understand your options and next steps.