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Reeves’ Reported EV Per‑Mile Charge Would Apply Overseas, Prompting Backlash

Treasury briefings describe a Budget proposal to charge electric cars about 3p per mile to replace shrinking fuel duty.

Overview

  • Media reports say the Chancellor plans to unveil a pay‑per‑mile levy in the November 26 Budget, with rates around 3p for EVs and a lower rate for hybrids and a rollout targeted for 2028.
  • Coverage indicates the charge would count miles driven abroad, with examples estimating about £45.90 for a Calais–Nice round trip and £32.46 for CalaisBordeaux at the reported rate.
  • The system would be aligned with annual VED, requiring drivers to estimate yearly mileage, carry over any unused allowance, and top up if they exceed their estimate.
  • A Treasury spokesman said ministers are considering a fair way to fund roads and signalled further measures to make owning EVs more convenient and affordable.
  • Motoring groups including the AA and the Association of British Drivers criticised the plan as unfair and bureaucratic, warning of double‑charging and potential harm to EV uptake, while reporting frames the move as recouping revenue lost from fuel duty that raises about £25bn plus £5bn in VAT each year.