Rachel Reeves has confirmed a car tax rule change that could cost rural motorists £156 a year. New analysis of government data shows that South West drivers could pay up to three times more annually than London drivers under the proposed 3p per mile EV road pricing scheme.
This is due to longer average journey distances. Rural communities, particularly those further from major towns and cities, face the highest projected annual costs, averaging over £156 per year compared to £76 for urban drivers closer to city centres.
Thom Groot, CEO of The Electric Car Scheme, said: "Even when this tax comes in, the major savings and environmental benefits of going electric remain firmly in place. Electric vehicles will continue to be the most practical and future-proof choice for UK drivers."
He added: "What we have found is that to get more people into EVs, we need financial incentives, such as the very successful salary sacrifice scheme, and not penalties. The data clearly shows that rural communities and regions outside London will bear the brunt of these costs due to longer necessary journeys and limited transport alternatives."
Electrifying.com's Ginny Buckley commented: "Pay-per-mile taxation might sound fair to those in Government, but for millions of drivers it will feel like yet another tax on everyday life. If you live in a rural area, driving isn't a lifestyle choice; it's a necessity, so there's a real danger this creates an EV postcode penalty where the people with the fewest transport alternatives end up paying the most."
Labour Party Chancellor Ms Reeves rubber-stamped the proposed pay-per-mile plan back in November under her Autumn Budget. It means motorists will be charged for every mile they drive, with those using the road more hit with higher costs.
