Overview
- Battery electric cars will be charged 3p per mile and plug‑in hybrids 1.5p from April 2028, with rates uprated annually by CPI and paid alongside Vehicle Excise Duty; the average EV driver (8,500 miles) would pay about £255 in 2028–29.
- The Office for Budget Responsibility forecasts the policy will raise about £1.1bn in 2028–29, rising to roughly £1.9bn by 2030–31, and estimates around 440,000 fewer EV sales over the period, partly offset by 130,000 extra sales from other measures.
- Mitigations include an expanded Electric Car Grant (reported £1.3bn), £200m for public chargers and an increase in the Expensive Car Supplement threshold for EVs to £50,000 from April 2026.
- The Budget maintains the temporary 5p‑per‑litre cut in fuel duty only until September 2026, after which the reduction will be phased out and duty will be uprated, ending more than a decade of freezes.
- Initial eVED scope excludes vans, buses, motorcycles, coaches and HGVs, with operational details to be consulted on, as motoring and green groups warn the move could slow EV uptake even as ministers cite fairness and a pledge to boost road maintenance funding.