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UK Poised To Impose 3p-Per-Mile EV Charge Under New VED+ Plan

Polling shows support for an EV levy, with industry warning uptake could slow unless charging improves.

Overview

  • Chancellor Rachel Reeves is expected to unveil a VED-plus, pay-per-mile system for electric vehicles, which has been reported but not yet legislated.
  • Coverage points to a likely rate of about 3p per mile, which would cost a typical private EV driver roughly £297 a year at 9,900 miles and a business user about £341 at 11,380 miles.
  • A government spokesman framed the change as restoring fairness because petrol and diesel drivers pay fuel duty while there is currently no equivalent for EVs.
  • A Stonehaven poll of 2,249 adults found 71% support EV drivers paying at least some tax, with stronger backing if revenues cut public charging costs or fund road repairs.
  • Industry figures, including the SMMT and Volvo’s chief executive, warned the timing is wrong and flagged equity concerns for more than 10 million homes without cheap off-street charging, as the UK’s EV fleet reaches about 1.4 million.