Overview
- Reports suggest Chancellor Rachel Reeves could announce a 3p‑per‑mile charge for electric vehicles in the 26 November Budget, though the measure has not been confirmed.
- The Treasury, via Exchequer Secretary Dan Tomlinson, says road‑pricing proposals remain under review with any decisions to be set out at fiscal events.
- Briefed details indicate drivers would estimate annual mileage, pay upfront, top up if they exceed it, and roll over unused credit, with consultation preceding a planned 2028 start.
- At 3p per mile, a typical 8,000‑mile EV driver would pay about £240–£250 a year, with example trip costs reported as £12 London–Edinburgh, £5 Cambridge–Bristol, and £2 Liverpool–Leeds.
- Analyses show petrol fuel alone costs roughly 13p–18p per mile versus about 5p–11p for EVs, while AA and the RAC Foundation urge caution to avoid weakening EV adoption.