Overview
- The Electric Vehicle Excise Duty will charge 3p per mile for battery EVs and 1.5p for plug‑in hybrids from 2028, with officials estimating an average cost of about £240 a year paid via an annual mileage estimate with top‑ups and rollover and with no tracking devices required.
- Press comparisons using RAC fuel prices and Nimblefins data put petrol running costs at roughly 17p per mile, while typical home‑charged EV costs including the new levy are estimated at about 5p–11p per mile.
- EV and hybrid uptake remains strong, with around 473,000 all‑electric registrations last year and nearly 500,000 combined BEV/HEV sales over 12 months, even as industry leaders warn heavy discounts are unsustainable.
- The Office for Budget Responsibility projects around 440,000 fewer EV sales over five years versus earlier forecasts, partly offset by grants and charging investment, with a government consultation underway ahead of the 2028 rollout.
- Trade bodies and analysts caution that new per‑mile charges and other costs send mixed signals that could deter switching, and AutoTrader research indicates the levy could put off nearly half of potential EV buyers.