British families planning to drive to France for their holidays could soon face significantly higher costs under new road tax plans being considered by the Chancellor.
What the new EV tax means for holiday drivers
Chancellor Rachel Reeves is reportedly planning to introduce a 3p-per-mile road tax for electric vehicle drivers in her upcoming Budget. The proposed charge would not only apply to journeys on UK roads but would also require motorists to pay for mileage accumulated while driving abroad.
This means that UK tourists taking their cars to France would effectively face double taxation – paying both the new UK road tax and France's existing motorway toll charges at the country's 90 toll points.
Industry experts warn of bureaucratic nightmare
AA president Edmund King has voiced strong concerns about the practical implications of the proposed system. "You would effectively be paying tax twice – to both the French and UK Government," he told the Telegraph.
King questioned how the government would implement such a scheme, suggesting it could create border chaos. "I can't really see any practical way around it. It would be pretty bureaucratic to have to check your mileage at Dover and have it stamped on some kind of certificate," he explained.
Paul Holland of payments firm Corpay, which works with vehicle fleets, highlighted the particular impact on UK drivers. "The UK's close proximity to Europe and Ireland will materially penalise people who take their cars abroad," he said.
Calls for fair system as Treasury defends plans
Paul Barker from Auto Express magazine described the prospect of charging for foreign travel as "clearly unfair and a huge flaw in the system." He emphasised that "it wouldn't be reasonable to charge drivers for mileage clocked up abroad when they're not using UK roads or infrastructure."
The Treasury has defended the need for road tax reform while acknowledging the importance of getting the balance right. A spokesman stated: "Just as it is right to seek a tax system that fairly funds roads, infrastructure and public services, we will look at further support measures to make owning electric vehicles more convenient and more affordable."
The proposed changes come as the government seeks to address the growing gap in road tax revenue as more drivers switch to electric vehicles, which are currently exempt from vehicle excise duty.
