Reeves' Pay-Per-Mile EV Tax Sparks Fears of Soaring Vehicle Crime
Chancellor Rachel Reeves' proposed pay-per-mile car taxes have faced strong criticism amid growing concerns that they could lead to a significant increase in vehicle crime. The new Electric Vehicle Excise Duty (eVED), which will charge motorists based on the miles they drive, is scheduled to launch in 2028 following a consultation period that is due to conclude in the coming weeks.
Details of the New Tax Scheme
Under the planned rules, electric vehicle (EV) owners will be required to pay three pence for every mile driven, while hybrid vehicle owners will face a charge of 1.5 pence per mile. This initiative is part of the Government's strategy to offset losses from declining fuel duty revenues as more drivers switch to electric and hybrid cars.
Peter Goldin, CEO of FleetCheck, highlighted the potential financial impact, stating: "If you're covering 20,000 miles a year in an EV, your eVED bill will be £600. For a few people, the ease with which that amount can be reduced will be difficult to resist."
Risks of Increased Car Clocking
Experts warn that the new tax could incentivize a surge in car clocking, where the mileage displayed on a vehicle's odometer is illegally tampered with to show a lower total distance travelled. This fraud typically involves winding back the odometer reading, making the car appear to have been driven less than it actually has.
Goldin noted that digital odometers in modern vehicles can be easily manipulated through the onboard diagnostics port, a process that "takes moments." He added that the necessary equipment varies by car model but is often inexpensive or available through online services that offer "no-questions-asked 'mileage adjustment.'"
Current Scale of the Problem
Vehicle clocking is already a widespread issue in the UK. In 2020, Rapid Car Check found that 6.32% of the seven million cars tested for mileage discrepancies failed, indicating tampering. With 41.2 million licensed vehicles in the UK as of June 2023, applying the same failure rate suggests there could be as many as 2.6 million clocked cars on the roads today.
Industry estimates indicate that approximately one in seven vehicles may be affected by mileage fraud, raising alarms that the new pay-per-mile tax could exacerbate this problem by providing a financial motive for more drivers to engage in odometer tampering.
