Overview
- Media reports say the Chancellor will set out a pay‑per‑mile levy for electric cars in the 26 November Budget, with consultation and introduction targeted for 2028.
- Coverage cites a 3p‑per‑mile rate for EVs and a lower rate for hybrids, with estimates suggesting typical drivers could pay about £250 more per year.
- The Daily Mail reports the measure may be structured as a VED+ prepay‑per‑mile system with top‑ups and forecasts revenue of about £1.8 billion by 2031.
- HM Treasury declined to confirm any details, stating tax decisions are made at fiscal events and that any changes would be outlined on 26 November.
- Critics including Sir Mel Stride and motoring groups warn of higher costs for drivers, while industry voices urge careful design to avoid slowing EV uptake.