Need to know
Chancellor Rachel Reeves announced that electric car drivers would face a 3p per mile road tax charge from April 2028
Need to know: concerns raised over new pay-per-mile charge for electric vehicles
- Chancellor Rachel Reeves has announced plans to introduce a controversial 3p pay-per-mile charge for electric vehicle drivers from April 2028.
- The new levy was revealed during November’s Budget as part of efforts to compensate for falling fuel duty revenue as more motorists switch from petrol and diesel cars to EVs. Reeves told the Commons the charge would help “double road maintenance funding in England over the course of this Parliament.”
- However, industry experts are warning the move could backfire and undermine the government’s net zero targets. John Wilmot, chief executive of LeaseLoco.com, fears the charge could deter people from making the switch to electric vehicles.
- Wilmot pointed to fresh YouGov data showing 55% of prospective car buyers are still considering petrol engines, while only 37% are looking at electric options. He warned that EV owners are already facing mounting costs including higher insurance and charging fees.
- “One of the massive benefits to driving an electric vehicle was that it was far cheaper to run than a petrol or diesel car, but a pay-per-mile tax risks eliminating that advantage,” Wilmot explained.
- The Chancellor has pledged £200 million towards expanding EV charging infrastructure and raising the expensive car supplement threshold to £50,000. This would save over one million motorists £440 annually, according to Reeves.
- But Wilmot cautioned that the mixed messages could slow progress towards environmental goals, saying drivers “want clarity before committing to making the switch to electric.”
- READ THE FULL STORY: UK drivers ‘think twice’ in new 3p pay-per-mile update
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