Overview
- The government says pay-per-mile options are under review and any decision will be announced at fiscal events, while multiple reports say Rachel Reeves is expected to outline a 3p-per-mile levy for EVs on 26 November with implementation from 2028 after consultation.
- Indicative costs reported are about £240–£250 a year for typical drivers, with proposals pointing to annual mileage estimates and top-ups and experts urging verification using MOT-recorded odometer readings rather than driver self-reporting.
- Officials have signalled no GPS or black box tracking, and commentators warn MOTs may need tighter mileage checks to administer any scheme fairly.
- Fuel duty raised just under £25bn in 2024/25 and is projected at £24.4bn in 2025/26, the 5p-per-litre cut runs to March 2026, and EVs lost their VED exemption in April as the Treasury seeks a "fairer system" while supporting the transition.
- Motoring groups caution the charge could slow EV uptake and hit rural and low-income drivers, YouGov polling shows 43% support and 34% oppose a per-mile EV tax, and Green Alliance urges ending the long fuel duty freeze, arguing inflation effects would be minimal.