Overview
- From April 2028, a new electric Vehicle Excise Duty will charge 3p per mile for fully electric cars and 1.5p for plug‑in hybrids, payable alongside existing VED with no in‑car trackers and mileage verified at MOTs.
- Treasury and OBR projections indicate the levy could raise about £1.1bn in 2028–29 and up to roughly £1.9bn by 2030–31 as it offsets declining fuel duty revenues.
- HMRC data show fuel duty receipts fell to £16.4bn between April and October 2025, £43m lower than the same period a year earlier, reflecting the shift away from petrol and diesel.
- Transport for London will remove the EV exemption and raise the daily congestion charge to £18 from January 2, with a 25% discount for electric cars and a 50% discount for electric vans and HGVs available to drivers registered for Auto Pay.
- Industry and consumer groups warn the per‑mile charge could dampen EV demand and increase household motoring costs, and insurance experts expect closer scrutiny of declared annual mileages.