Overview
- DVLA data show 309,000 zero‑emission vehicles were renewed in February–March 2025 with more than a month left, a 1,400% jump that delayed roughly £30 million in receipts.
- A DVLA rule let owners renew before 1 April at the existing nil rate, allowing many to postpone paying the new £195 annual charge that applies to EVs registered after April 2017.
- The National Audit Office said the DVLA could have better foreseen the behavioural response and used it to inform HM Treasury’s decision-making.
- Government proposals reported for the Budget include a ‘VED+’ mileage charge of 3p per mile from 2028, expected to follow consultation and projected to raise about £1.8 billion by 2031.
- Critics argue the measures penalise EV owners, and Transport for London has said electric cars will be liable for the Congestion Charge from 2 January.