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Electric car drivers could face new pay-per-mile tax under Treasury plans: Report

Unveiling in the November 26 Budget, `Rachel Reeves` will propose a 3p per mile fee for electric vehicle drivers, costing around £250 annually from 2028.
With fuel duty revenues falling, the Treasury faces a shortfall as petrol and diesel drivers raise more than 25 billion annually, while EVs are exempt.
The Daily Telegraph reported drivers would estimate annual mileage, pay upfront with vehicle excise duty , top up if exceeded, and reports say app-based mileage reporting ensures privacy safeguards.
Motoring groups warned the pay-per-mile tax could be seen as a `poll tax on wheels` and may raise an estimated £4 billion by 2031, risking slower EV adoption.
Research shows 49% of drivers back pay-per-mile as fairer, while the Government offers £4 billion support and notes VED exemption removal in April with planned consultation.

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Evening Standard

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The Independent (US)

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Government says ‘fairer’ motoring tax system is needed amid pay-per-mile report

Chancellor Rachel Reeves will unveil a policy to introduce a 3p per mile tax for EVs when she delivers her Budget, the Daily Telegraph reported.

21 hours ago·London, United Kingdom

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The Daily Sceptic

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Reeves to Hit EVs With £250 Pay-Per-Mile Tax

Electric vehicle drivers will be hit with a new pay-per-mile tax in the Budget, with a new charge of 3p per mile being levied on top of other road taxes, costing the average driver an extra £250 a year.

22 hours ago

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