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UK Weighs Pay‑Per‑Mile VED+ Charge for EVs, With 3p Rate Under Consideration

Officials are exploring the levy to replace shrinking fuel‑duty revenue ahead of a possible 26 November Budget consultation.

Overview

  • Chancellor Rachel Reeves is expected to outline proposals in the Budget later this month, with reports pointing to a consultation that could pave the way for a rollout from 2028.
  • Coverage suggests a rate of about 3p per mile, which would add roughly £300 a year for a typical EV driver covering around 9,900 miles.
  • The Times is cited as reporting that electric vans would be excluded while plug‑in hybrids could be included, raising the prospect of a double cost alongside fuel duty.
  • A government spokesperson said there is currently no equivalent to fuel duty for EVs and signaled a shift toward a fairer system for all motorists.
  • Polling by Stonehaven indicates 71% of adults support EV drivers paying some tax, with stronger backing if proceeds fund charging upgrades or pothole repairs, as industry groups warn the move could slow uptake.