Labour Urged to Rethink Pay-Per-Mile Car Tax for Rural EV Drivers

Labour Urged to Rethink Pay-Per-Mile Car Tax for Rural EV Drivers

Experts have called on the Labour Party to extend the Electric Car Grant and reconsider its electric vehicle tax policy, amid growing concerns that pay-per-mile car taxes could delay the transition to EVs and unfairly impact certain regions.

Regional Disparities in EV Adoption

Research from Autotrader reveals significant regional differences in electric vehicle interest. An average of 31.2% of Autotrader users viewed at least one EV advertisement in the past 90 days. However, drivers in the KW postcode area of Wick, Scotland, showed the lowest interest at just 21.4%. In contrast, motorists in Warrington, Cheshire (WA postcode), demonstrated the highest engagement at 35.9%.

Ian Plummer, chief customer officer at Autotrader, identified structural challenges rather than a lack of consumer appetite as the primary barrier in areas like Scotland and the South West of England. "These areas have more rural communities and longer average driving distances, all of which make switching to electric feel riskier and less practical for drivers - even though that's not necessarily the case," Mr Plummer explained.

Concerns Over Pay-Per-Mile Tax Impact

The proposed pay-per-mile charging system has sparked fears that rural electric vehicle owners could be hit hardest. Fresh analysis indicates that motorists in some countryside regions may face annual bills exceeding £150, while drivers in London could pay as little as £33 under the same system.

Mr Plummer warned that "introducing pay-per-mile charging sends mixed messages to consumers which risks delaying the UK's transition at a time when only around five per cent of cars on UK roads are electric." He emphasized the need for nationwide progress that supports all people in the transition to electric vehicles.

Calls for Policy Reconsideration

To address these challenges, experts suggest:

• Extending the Electric Car Grant to include the second-hand market
• Rethinking EV tax policy to avoid penalizing rural drivers
• Implementing measures that support nationwide progress toward electric vehicle adoption

Mr Plummer concluded that the UK needs to get "serious about nationwide progress" and ensure all drivers are supported during the transition to electric vehicles, particularly those in regions with structural challenges to EV adoption.