Overview
- From April 2028, battery‑electric cars will be charged 3p per mile and plug‑in hybrids 1.5p per mile, with vans, buses, motorcycles, coaches and HGVs initially out of scope.
- Drivers will self‑report mileage and have it verified annually via MOT centres or accredited providers, including light‑touch checks for new cars in their first two years, with no in‑car trackers required.
- The OBR forecasts £1.1bn in revenue in 2028–29 rising to about £1.9bn by 2030–31, and says the charge is roughly half the effective fuel‑duty rate for petrol and diesel users.
- The OBR’s widely cited forecast of around 440,000 fewer EV sales has been questioned, as ministers open a consultation addressing enforcement, odometer tampering risks and administrative details with the DVLA.
- Miles driven abroad will still count toward the charge, drawing criticism from motoring groups, while the Budget pairs the levy with support measures such as a higher expensive‑car threshold for EVs, extended purchase grants and extra charging funds; some brands are offering rebates to offset costs.