Chancellor Rachel Reeves plans to charge electric vehicle drivers
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Chancellor Rachel Reeves is planning to charge electric vehicles (EVs) by the mile to compensate for the loss of fuel tax revenue. Following public consultation, Reeves proposed EV road charges are expected to take effect from April 2028. By the early 2030s, it could generate 1.8 billion a year for the public purse. Reeves is likely to implement a 3p-per-mile charge for EVs on top of the existing road tax to compensate for revenue loss from fuel tax. Reeves Reeves EV motorists would have to pay an extra $326 annually Reeves is reportedly considering per-mile EV charges in her November 26 Budget to help plug a £20bn–£30bn budget gap. According to sources, the government’s plans would see the average EV driver paying an additional £250 ($326) per year. Currently, the average petrol or diesel car owner pays £600 ($784) in fuel duty. Under the proposals, hybrid drivers would also be charged lower per-mile fees compared with zero-emission vehicles. Additionally, vehicles wouldn’t be tracked electronically, though the plans don’t specify whether vans and light commercial vehicles are part of the scheme. The Treasury has, however, declined to comment on any speculation before November 26. Nonetheless, officials insist they are still eager to expand EV ownership in line with the UK’s net-zero ambitions. A government representative, when asked about the possibility of per-mile charges for drivers of EVs, remarked, “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.” Last year, the Association of Fleet Professionals had cautioned that a pay-as-you-drive charge for electric cars could have unforeseen consequences. Similarly, now, Sir Mel Stride, the shadow chancellor, says it would be wrong for Reeves to target commuters and drivers simply to fix a budget…
Filed under: News - @ November 6, 2025 6:28 am