Overview
- The government confirmed in late May that an electric vehicle excise duty (eVED) will charge 3p per mile for battery EVs and 1.5p per mile for plug‑in hybrids, starting in April 2028.
- HM Treasury projects roughly £1.1 billion in revenue in 2028/29 and higher receipts later, while the Office for Budget Responsibility warned the charge will reduce EV demand and gave a larger estimate of lost sales than the Treasury.
- New constituency‑level analysis from the BVRLA and New AutoMotive shows large geographic differences in total and per‑driver bills, with some urban fleet areas facing the biggest aggregate sums and many rural constituencies seeing the highest per‑driver costs.
- Industry groups and insurers warn the flat per‑mile charge will hit people who must drive farther because of poor transport or charging access, which could make some households less willing or able to switch to electric cars.
- The levy sits alongside the 2030 ban on new petrol and diesel sales and a government decision not to raise fuel duty, a combination that critics say could make petrol relatively cheaper and create pressure for targeted mitigations such as free miles or rural exemptions.