Overview
- Reports say Chancellor Rachel Reeves is expected to outline the plan in the 26 November Budget, though the charge would not begin until 6 April 2028.
- At 3p per mile, a typical EV driver covering about 10,000 miles a year would pay roughly £250–£300, with business users estimated at around £340.
- Coverage indicates plug-in hybrids would be included at a discounted rate and still pay fuel duty, while electric vans could be exempt.
- Industry figures warn the proposal could dampen EV uptake, citing New Zealand’s post-announcement sales drop, while polling shows stronger support if revenues cut charging costs or fix roads.
- Insurance and leasing experts forecast closer mileage verification, more odometer checks, potential mid-term premium adjustments, and greater use of telematics.