Particle.news
Download on the App Store

UK Poised to Unveil 3p-Per-Mile Charge for Electric Cars in Reeves’ Budget

Ministers are expected to propose an estimate-and-pay model collected with vehicle excise duty to plug falling fuel duty receipts.

Overview

  • Multiple outlets report the Chancellor plans to include the EV levy in the 26 November Budget, with consultation expected in 2026 and implementation discussed from 2028.
  • Under the reported design, drivers would declare expected annual mileage and prepay at 3p per mile, with unused miles rolling over and top-ups due if estimates are exceeded, and officials insist there will be no mass electronic tracking.
  • Typical costs for EV owners are estimated at roughly £250–£300 per year, with journey examples including about £12 for London to Edinburgh.
  • Hybrid vehicles would be charged at a reduced per‑mile rate, and the scheme is projected to raise around £1.8bn annually by the early 2030s.
  • The government frames the measure as a fairness replacement for lost fuel duty, while opposition figures and motoring groups warn it could slow EV adoption and some label it a 'poll tax on wheels'.