Chancellor Rachel Reeves is facing significant warnings from industry experts over potential damage to the UK's electric vehicle market if she proceeds with a speculated car tax shake-up in the upcoming Autumn Budget.
Industry Experts Sound the Alarm
Motoring specialists have urgently called on the Labour Chancellor to avoid implementing measures that could harm sales of new electric cars. Ms Reeves has been cautioned that she risks serious backlash and could jeopardise the nation's transition to electric vehicles with new tax rules when she delivers the Autumn Budget on November 26, 2025.
Recent reports indicate the Treasury is considering introducing new car tax regulations specifically for electric vehicles. Among the potential measures being discussed are the implementation of pay-per-mile car taxes and weight-based charges, which could significantly increase costs for EV owners.
Criticism of "Siloed Thinking"
Tanya Sinclair, CEO of Electric Vehicles UK, described the potential tax changes as having the "hallmarks of siloed thinking". She emphasised that while a fair tax contribution from electric vehicles is inevitable, it shouldn't come at the expense of coherent policy-making.
"Talk of road pricing, surcharges, or changes to the Motability scheme sends a mixed message at a pivotal moment for adoption," Sinclair stated. "If Government wants drivers to go electric, every policy signal should make that clear."
Risking Momentum and Fairness
Ginny Buckley, chief executive of Electrifying.com, echoed these concerns, suggesting the Government appears to be sending contradictory messages to consumers. She warned that the approach risks stalling the momentum built around electric vehicle adoption.
"Drivers are being encouraged to go electric, then hit with the threat of new taxes," Buckley explained. "You can't drive the EV transition with one foot on the accelerator and the other on the brake. It's short-sighted and risks stalling momentum, while adding even more cost to EV drivers who can't charge at home and already pay more per mile in public charging than many petrol drivers. That's hardly a fair or smart move."
A spokesperson for HM Treasury told GB News that the Chancellor would not comment on speculation around future changes, leaving the automotive industry and potential EV buyers awaiting clarity until the budget announcement later this month.
