Overview
- Chancellor Rachel Reeves is reported to be preparing a pay‑per‑mile levy for electric cars in the 26 November Autumn Budget, with details expected to go to consultation.
- Media reports say drivers would prepay based on estimated annual mileage, carry over any unused allowance, and top up if they exceed it.
- The tariff is reported to include miles driven abroad, drawing warnings from motoring groups about double taxation alongside foreign road tolls.
- A rollout around 2028 is being discussed, with coverage citing an average cost of roughly £250 a year for EV owners and potential revenues of about £1.8 billion by 2031.
- An official statement says there is no EV equivalent to fuel duty and promises work toward a fairer system while considering further support for the transition.