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Reports Say Reeves Poised to Announce 3p‑Per‑Mile EV Charge in Budget

The Treasury says it aims to replace falling fuel duty with a scheme that will be consulted on before a planned 2028 start.

Overview

  • Multiple outlets report the Autumn Budget will include a proposal for electric‑car drivers to pay about 3 pence per mile, with final details still to be set after consultation.
  • The reported design would see EV owners estimate annual mileage and make an extra payment on top of Vehicle Excise Duty, with top‑ups due if they drive further and credits if they drive less.
  • Government officials frame the move as creating a fairer system since EVs have no fuel duty equivalent, while industry and motoring groups warn it could slow EV uptake and prove a “poll tax on wheels.”
  • Critics highlight equity concerns for drivers who rely on public charging or travel long distances, and warn that dropping potential ‘sweeteners’ such as grants or lower VAT on public charging would worsen the impact.
  • The charge is reportedly targeted for 2028 implementation to address shrinking fuel duty revenues, with stakeholders pressing for clarity on consultation, enforcement and any supporting incentives before the 26 November Budget.