Overview
- Chancellor Rachel Reeves is considering options such as pay-per-mile road pricing and levies linked to vehicle weight to replace declining fuel duty revenue, according to reports.
- Ministers are exploring offsetting support, including larger or extended Electric Car Grants and cheaper on-street charging through a cut or equalisation of VAT on public charging.
- Further measures under discussion include scrapping or altering business rates for charging infrastructure and pressing Ofgem to reduce standing and capacity charges that raise charging costs.
- Whitehall figures warn new EV taxes could deter motorists from switching, while industry critics say business-rate changes could increase public charging prices and curb investment.
- No policies have been announced, and HM Treasury says tax decisions are made at fiscal events, with the Autumn Budget scheduled for 26 November.