In the same way that reliance on digital systems has become deeply embedded in professional life, so too has the need for fleet strategies that align regulatory awareness with commercial foresight and operational agility.

Because of this, we’re diving into exactly what it is that fleet managers should be focussed on throughout the new year, and highlight what should take the upmost priority over long-term strategies, beginning with…

1. Compliance, reporting and regulatory complexity

In 2026, compliance remains a strategic priority with obligations across core areas such as emissions standards, city‑level zone enforcement and reporting frameworks.

A prime example of this would be for fleets operating in London, Birmingham, Bristol and Oxford, whereby understanding the compliance around Ultra Low Emission Zones (ULEZ), Clean Air Zone (CAZ) rules and planned changes in 2026 is essential to avoid fines, maintain service reliability and meet environmental commitments.

Then, by closely monitoring emission zone updates and vehicle eligibility, fleet managers can optimise route planning to reduce congestion charges, anticipate potential delays and adjust delivery schedules proactively – all of which not only lowers operational costs but also enhances overall service reliability and customer satisfaction.

However, compliance also extends beyond emissions into areas such as benefit‑in‑kind (BiK) reporting and company car taxation, whereby HM Revenue & Customs is phasing out legacy forms in favour of mandatory payroll reporting from April 2026, and therefore requiring closer alignment between HR, finance and fleet teams to ensure accuracy and timeliness.

As a result, fleet managers must invest in processes and systems that can accurately capture and report data across the vehicle lifecycle, not only to meet regulatory obligations but also to underpin strategic decision‑making with transparency and confidence.

2. Navigating the end of EV incentives and new tax rules

Electrification remains central to fleet strategy in 2026, but the landscape of incentives and tax benefits is changing.

Breaking this down, guidance from the UK government shows that electric vehicles (EVs) have been liable for Vehicle Excise Duty (VED) since April 2025, with a £10 first‑year rate for qualifying EVs followed by a standard £195 rate thereafter, and that EVs above certain list price thresholds remain subject to the Expensive Car Supplement (ECS). However, this threshold for zero‑emission cars is set to rise to £50,000 from April 2026, reducing whole‑life cost uncertainty for many models.

Tax incentives such as the 100% 1st‑year capital allowance for new zero‑emission cars and EV charge‑point equipment will also continue until March 2026, and therefore may provide more opportunities for fleets to accelerate electrification where the financial case makes sense.

As well as this, BiK tax rates for company electric cars will remain low compared to traditional internal combustion engine (ICE) vehicles, but will rise incrementally over the coming years, meaning that transitional easements for plug‑in hybrid vehicles could help mitigate some cost increases until at least 2028.

But what adds even further complexity here is the fact that the UK government has consulted on introducing a mileage‑based EV excise duty (eVED) to take effect from 2028, which, if implemented, will impose charges per mile driven by EVs to balance lost fuel duty revenue – a development fleet managers should monitor closely even though it sits beyond the 2026 horizon.

3. Technology and data integration

Technology has been essential for turning operational data into actionable insight for a long time now, and is often used to improve efficiency, reliability and cost control.

In 2026, the industry reliance on this will only increase as artificial intelligence (AI) ready data architectures and integrated telematics platforms will allow fleet managers to forecast maintenance needs, optimise utilisation and extend vehicle lifecycles, rather than react to issues after they occur.

This will offer an incredible advantage in driving performance and cost control across the operation, and along with the integration of EV charging data with traditional fuel management and reporting workflows, mixed fleets will be able to ensure coherent reporting which satisfies both operational needs and HMRC compliance for mileage reimbursement and tax purposes too.

4. Insurance market dynamics and rising premiums

Insurance remains a priority in 2026 as premiums rise and risk profiles shift with the adoption of EVs and mixed fleets, although rising repair costs, higher asset valuations and evolving risk exposures mean fleet managers should consider partnering closely with brokers and insurers to develop risk‑mitigation strategies that protect operational continuity while controlling premium volatility.

This includes leveraging telematics and operational data to demonstrate risk reduction, support safer driving and justify favourable insurance terms, as well as scrutinising policy coverages to ensure clarity around EV‑specific issues such as battery damage, charging infrastructure liabilities and third‑party exposure.

5. Seizing opportunities beyond restriction

Among regulatory and cost pressures, 2026 also presents opportunities for fleet managers whereby policy shifts designed to drive air quality and mobility can unlock new operational freedoms and route efficiencies.

For example, as some CAZ and congestion charging incentives evolve, compliant vehicles may gain access to previously restricted routes without penalty, enhancing productivity and reducing indirect costs.

What’s more, managers who integrate these route opportunities with EV deployment strategies can also maximise battery range efficiency, reduce charging downtime and strategically time vehicle rotations – all of which can enable fleets to fully benefit from remaining incentives while ensuring operational continuity and cost-effective electrification.

As such, this proactive alignment with emission zone policies across UK cities allows fleet managers to secure preferential access, enhance operational certainty and turn regulatory complexity into competitive advantage rather than constraint, while also supporting broader sustainability goals, reducing operational costs and strengthening the reputation of the fleet as a responsible, forward‑thinking operation.

Supporting a strategic agenda for 2026

Prioritisation in 2026 is about understanding how compliance, taxation, technology, insurance and policy opportunities intersect, and using that insight to manage risk, control costs and future‑proof operations.

This is exactly where we come in to help, as our entire team here at S&G Response work closely with fleets to turn these priorities into practical action, providing solutions that combine secure data management, expert regulatory guidance and tailored risk and insurance strategies.

Partnering with us allows fleet managers make informed decisions that reduce costs, enhance efficiency and strengthen stakeholder confidence, which in turn, means navigating the complex 2026 landscape with clarity, control and confidence, with our expert support at every stage.

If you would like to explore how S&G Response can help your fleet achieve secure, compliant and future-ready outcomes, our team is here to provide guidance and practical support.

Reach out today.