Overview
- Heidi Alexander told MPs there are no proposals for a national pay-per-mile scheme, before sources said she misspoke and intended only to rule out a national road-pricing rollout.
- Media reports say Chancellor Rachel Reeves is considering a 3p-per-mile levy on electric vehicles from 2028, which the Treasury frames as part of creating a fairer system since EVs do not pay fuel duty.
- Automotive voices warned against new EV levies, with Ford UK’s Lisa Brankin calling it the wrong time, the SMMT saying it is the wrong measure, and the AA branding it a poll tax on EV owners.
- Estimates suggest a 3p-per-mile charge would cost typical EV drivers roughly £250–£300 a year, with higher totals likely for business users who rack up more miles.
- A final decision is due in the 26 November Budget, with reports pointing to a consultation first and with alternatives also floated, including fuel duty changes, company car tax tweaks, and potential VAT on the Motability scheme.