Motorists 'to be slapped with pay-per-mile tax by Rachel Reeves'

Evening Standard

The Chancellor is expected to announce a new 3p-per-mile charge for electric vehicle (EV) drivers in the upcoming Budget on November 26.The levy, due to start in 2028, would add around £250 a year for EV owners as part of efforts to replace lost fuel duty revenue and ensure all drivers contribute to road upkeep.The plan has sparked backlash from critics who call it a “tax on motorists,” while the government argues it’s needed to fill a £30 billion gap in public finances.

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00:00If you drive an electric vehicle, you're about to be taxed.

00:04EV drivers are expected to be slapped with a pay per mile tax by Rachel Reeves in the

00:09upcoming budget. But what does this actually mean?

00:12If you drive an electric vehicle, you will be charged three pence per mile.

00:16That's an extra £250 a year. This is part of an effort to replace lost fuel

00:21duty revenue and ensure all drivers contribute to road upkeep.

00:25The plans are still under consideration as EV drivers don't pay fuel duty.

00:30However, they do contribute to congestion and general wear and tear on the roads.

00:34The scheme is expected to be rolled out from 2028 and bring in £1.8 billion by 2031.

00:41All part of the Chancellor's agenda to fill the £30 billion financial black hole in her budget.

00:55Thank you so much for joining us.

01:25You

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