Member News – 27 May 2026

27 May 2026

In this issue:

• Clarification on Vehicle Excise Duty announcement.
• Chancellor announces changes to Approved Mileage Allowance Payments.
• Regulatory changes to take effect on zero-emission vehicles up to 4.25 tonnes.
• Middle East disruption: briefing for members.
• PD Ports site visit, 23 June.
• Member Advice Centre briefing note: emissions reduction technologies for on road transport.

Clarification on HGV Vehicle Excise Duty announcement 

Following the Chancellor’s announcement of a HGV VED ‘holiday’ for the following 12 months, Logistics UK has gained the following clarifications from Treasury and DVLA:

• It is expected that the reduction will come into force for vehicles due for renewal on or after 1 July 2026. The 12 month reduction will apply from that date.
• The VED holiday will be based on vehicle classification.
• The HGV Levy will continue to operate as normal. Vehicles 12,000kgs and over will continue to pay this levy, based on the V149/1 document, plus the £1 VED rate.
• Therefore a 12,000kgs EURO VI vehicle will pay £162 (£1 VED plus £161 road levy), and so on.

Logistics UK will circulate any further clarifications as they are published by the authorities. Members with queries should contact the Member Advice Centre.

Chancellor announces changes to Approved Mileage Allowance Payments 

As part of the series of government measures announced last week to help support businesses with rising costs, including on fuel duty and HGV taxation, Approved Mileage Allowance Payments (AMAP) rates will increase.

AMAP rates will increase by 10 pence per mile, backdated to April 2026. Under the revised rates, employees using their own vehicle for business travel will be entitled to claim up to 55 pence per mile for the first 10,000 business miles travelled. The rate for mileage above 10,000 miles remains unchanged as 25 pence per mile.

Regulatory changes to take effect on zero-emission vehicles up to 4.25 tonnes 

Members are reminded that the regulatory flexibilities introduced for zero emission vehicles up to 4.25 tonnes come into force next week, Monday 1 June.

This will mean these vehicles will no longer be required to have a tachograph installed and the driver will be required to adhere to GB Domestic Hours, rather than Assimilated Hours (the new name for EU hours). The vehicles will also move into Class 7 MOT. DVSA has issued Guidance on what operators need to do to ensure they remain compliant with the roadworthiness testing requirements.

If members have any questions on this, please contact the Member Advice Centre for further information.

Middle East disruption: briefing for members 

The Middle East conflict is continuing to impact logistics and supply chains, including pushing up the price of fuel and leading to increased costs associated with managing supply chain disruptions. This is putting acute pressure on logistics businesses and, as logistics businesses typically operate on narrow margins, higher costs for consumers too.

Logistics UK welcomes the government’s announcement on 20 May 2026 to delay the planned fuel duty increase from September to the end of the year, and to provide a 12-month road tax holiday for HGVs, and reduce the red diesel duty rate for rail freight, to prevent further inflationary pressure at a time when the global economy is so disrupted.

Additionally, we are calling for government to:

• Formally recognise logistics as a priority fuel user within its resilience planning.
• Include logistics in the British Industrial Competitiveness Scheme (BICS) to cut electricity costs.
• Extend full expensing to leased zero-emission commercial vehicles.
• Introduce an incentive for logistics businesses to use liquid low carbon fuels, to support the shift away from traditional fuels.
• Pause business rates increases and reforming the system.
• Take a longer-term approach to mode shift grants, to enable businesses to plan alternative transport approaches with greater confidence.

We are also:

• Expressing support for the government’s action to tackle late payments.
• Urging the government to monitor narratives related to profiteering and to manage media and social‑media communications to help prevent fuel and other commodity shortages driven by panic buying.

Logistics UK has a three-point strategy during this crisis: sharing insight with members; informing government and other key stakeholders of the impact on our sector; and urging government to provide support to our sector.

Read our latest Middle East update here which includes data on fuel prices.

PD Ports site visit, 23 June 

Logistics UK’s Water Council is organising a site visit to PD Ports in Groveport, Lincolnshire on Tuesday 23 June. This event offers a valuable opportunity to gain first-hand insight into operations at one of the UK’s key logistics and distribution hubs. During the visit, attendees will:

• Hear from PD Ports representatives about Groveport’s role in supporting supply chains.
• Tour the site and observe operations in action.
• Explore current developments, challenges, and future opportunities in the ports and logistics sector.
• Network with fellow Logistics UK members and industry professionals.

Places are strictly limited and will be allocated on a first-come, first-served basis. If you would like to attend, please register here or contact Alexandra Herdman for more details.

Member Advice Centre briefing note: emissions reduction technologies for on road transport 

With the UK’s focus on cleaner vehicle emissions, and with technologies enabling companies to move with the times, Logistics UK has produced a briefing note outlining emerging technologies designed to reduce particulate matter (PM) emissions from road transport. These include innovations relating to brakes, tyres, onboard capture systems, exhaust controls, and roadside technologies. The briefing also addresses key cross‑cutting issues, such as EV battery weight, the limitations this places on regenerative braking, and how Euro 7 standards will apply to electric vehicles.

The briefing note can be downloaded here.

Average EU and UK forecourt prices

Please find the average EU and UK forecourt prices here.