Overview
- The Electric Vehicle Excise Duty will charge 3p per mile for battery EVs and 1.5p for plug‑in hybrids from 2028, with typical EV owners projected to pay about £240–£250 a year.
- Drivers will estimate annual mileage alongside VED, top up if they exceed it, and roll over unused miles to the next year.
- Treasury plans earmark revenue for local road maintenance, with more than £2 billion a year pledged for councils by 2029–30.
- Motor groups and analysts caution the new levy combined with fuel duty changes could deter switching to cleaner cars, potentially affecting about 982,000 hybrid drivers and sending mixed signals to buyers.
- EV advocates counter that running costs will remain lower than petrol, citing current petrol costs of roughly 17p per mile and home‑charging rates that can keep EV costs in the 5p–11p per mile range even with the levy.