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Potential 3p per Mile E-Car Tax Unsettles Drivers Amid Pay-per-Mile Rumours - Nottinghamshire Live
The UK plans a 3p per mile charge on electric vehicles to offset lost fuel duty revenue, with hybrid drivers facing a lower rate, according to government discussions.
- Next month, Chancellor Rachel Reeves is expected to propose a 3p-per-mile charge for electric vehicle drivers in the UK Budget, applied on top of existing road taxes as six million EV drivers are projected.
- A widening 'tax gap' from fewer petrol and diesel cars is driving policy discussion as Treasury officials note fuel duty covers petrol and diesel but not electric vehicles, creating funding shortfalls.
- EV owners would estimate and prepay their yearly mileage, with a 3p-per-mile fee adding 12, 5, or 2 depending on journey distance, and hybrid drivers pay a reduced rate.
- The Society of Motor Manufacturers and Traders warned the measure could deter EV buyers and insiders say it might add about £250 annually, risking the transition to electric vehicles.
- A government spokesperson said the plan seeks a fairer system while backing the EV transition, pointing to support including grants up to 3750 per vehicle and considering VAT changes.
Insights by Ground AI
16 Articles
16 Articles
Finance Minister Rachel Reeves, who will present the budget on November 26, is considering imposing a tax of 3 pence (3.5 euro cents) for every mile (1.6 km) an electric car travels.
Coverage Details
Total News Sources16
Leaning Left3Leaning Right3Center3Last UpdatedBias Distribution34% Left, 33% Center, 33% Right
Bias Distribution
- 34% of the sources lean Left, 33% of the sources are Center, 33% of the sources lean Right
34% Left
L 34%
C 33%
R 33%
Factuality
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