Autumn Budget 2026: what changes for your money, and when
Higher tax on rental and savings income, a bigger trading allowance, a smaller BADR limit and a new minimum wage. What changes, and when.
Most people know their car payment. Far fewer know what the car costs them in total once fuel, insurance, tax, servicing and the loss in value are added up. Here is how to work it out, with real fuel prices.
A petrol car doing 8,000 miles a year at 45 mpg, with example insurance and servicing costs, comes to about £2,650 a year, or £221 a month, before any finance or loss in value. That is about 33p for every mile.
The costs that add up
| Cost | A year | Where the figure comes from |
|---|---|---|
| Fuel | £1,407 | 8,000 miles at 45 mpg, unleaded at 174.07p a litre |
| Insurance | £620 | Example figure, use your own renewal quote |
| Vehicle tax | £200 | Standard rate for most cars after the first year, 2026/27 |
| Servicing, MOT and repairs | £420 | Example figure |
| Total | £2,647 | £220.57 a month, 33.1p a mile |
The fuel price is the UK average for unleaded in the week of 26 October 2026 from the government's weekly road fuel prices. Diesel was 199.22p.
Fuel is the part that moves most
Fuel cost is miles ÷ mpg × 4.546 litres in a gallon × price per litre. At 174.07p a litre:
| Miles a year | 35 mpg | 45 mpg | 55 mpg |
|---|---|---|---|
| 5,000 | £1,130 | £879 | £719 |
| 8,000 | £1,809 | £1,407 | £1,151 |
| 10,000 | £2,261 | £1,759 | £1,439 |
| 12,000 | £2,713 | £2,110 | £1,727 |
Use the mpg you actually get, not the official figure, which is usually higher than real driving.
Electric for comparison
An electric car managing 3.5 miles per kWh, charged at home at the price cap rate of 26.32p per kWh, would use about £602 of electricity for the same 8,000 miles. Public rapid charging costs a lot more per kWh, so the saving depends on how much you can charge at home. The EV running cost calculator splits home and public charging.
The cost most people leave out
Loss in value, or depreciation, is often the biggest single cost of owning a car, but you never get a bill for it. If a car worth £15,000 loses £2,250 in a year, adding that to the example above takes the total to about £4,900 a year, £408 a month, or 61p a mile. See how quickly your car is likely to lose value with the car depreciation calculator.
Work out your own
The car running cost calculator adds up fuel, insurance, tax, servicing, finance and depreciation, and shows the cost a month and a mile. If you are choosing between two cars, the car comparison calculator puts both side by side.
Sources: Department for Energy Security and Net Zero, Weekly road fuel prices; Ofgem, Energy price cap unit rates; HM Treasury, Budget 2026 Annex A for vehicle tax. Checked 1 November 2026.
This is general information, not financial or tax advice.
It explains published rules and figures. Your own position depends on your full circumstances,
so speak to a qualified adviser before acting on it.