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Story summary
- Chancellor Rachel Reeves announced the mileage rate for the first 10,000 business miles will rise from 45 pence to 55 pence per mile, back-dated to April 2026.
- Treasury minister Dan Tomlinson said the rate has raised workers’ costs, citing MP Jim McMahon’s case where a 45 pence rate forced a £1,000 expense for a 400-mile commute.
- Jon Stride warned that higher mileage payments create tax and National Insurance liabilities for employee and employer.
