Electric Vehicle Owners Face Steep New Road Tax
Chancellor Rachel Reeves is reportedly developing a new pay-per-mile taxation system specifically for electric vehicles that could see some drivers paying 28p per mile in combined charging and tax costs. This represents a significant increase from the proposed 3p per mile base rate when additional charging expenses are factored in.
Financial Impact on Motorists
According to reports from The Telegraph, this new taxation approach could cost electric vehicle owners an additional £250 per year. The scheme is expected to be implemented from 2028, by which time projections indicate up to six million people will be driving electric cars across the UK.
The financial burden becomes particularly clear when considering longer journeys. A trip from London to Edinburgh would incur approximately £12 in tax alone under the proposed 3p rate, according to newspaper calculations.
Industry Concerns and Government Position
Chris Pawsey, founder of Everything Green Energy, expressed serious reservations about the proposal's timing. "My fear is that it will reduce viability and uptake of EVs," he told The Standard. "They could raise more tax with a 2% increase on diesel and petrol. In the long term I think this is inevitable as traditional fuels phase out."
A government spokesperson defended the need for a new system, stating: "Fuel duty covers petrol and diesel, but there’s no equivalent for electric vehicles. We want a fairer system for all drivers whilst backing the transition to electric vehicles."
The spokesperson also highlighted the government's £4 billion investment in electric vehicle support, including grants reducing upfront costs by up to £3,750 per eligible vehicle.
Unlike more technologically advanced proposals, drivers will reportedly need to estimate their own mileage rather than relying on electronic tracking systems under the current plan.
