Overview
- Multiple outlets report Chancellor Rachel Reeves will outline a pay‑per‑mile plan for electric cars on 26 November, with a headline rate of 3p per mile.
- The proposal is expected to go to public consultation and target a 2028 rollout, and it would sit alongside Vehicle Excise Duty that EVs now pay.
- DfT figures show battery EVs averaged about 8,900 miles in 2024, leading to coverage estimates of roughly £267 per car and about £375 million a year from around 1.4 million vehicles.
- Motoring groups and manufacturers warn the charge could be regressive and dent EV uptake, especially for drivers reliant on public charging that costs roughly 11.3p–17.63p per mile.
- Reported implementation options include self‑declared mileage or MOT odometer checks, potential lower rates for hybrids, and unresolved cross‑border issues that could lead to double charging.