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Cars
Electric Vehicles
Electric car drivers could face new pay-per-mile tax under Treasury plans
Chancellor Rachel Reeves could be set to announce new EV levy that would cost average EV driver £279 a year


Chancellor Rachel Reeves could be set to announce a pay-per-mile tax on EV drivers in the upcoming budget

Chancellor Rachel Reeves could be set to announce a pay-per-mile tax on EV drivers in the upcoming budget (PA Archive)

Electric vehicle drivers could soon face a new tax on every mile they drive, under plans reportedly being finalised for the Chancellor’s upcoming Budget later this month.

According to a report by The Telegraph, Rachel Reeves is preparing to introduce a pay-per-mile charge for electric and hybrid car owners, starting at around 3p per mile, in a move designed to offset falling fuel duty revenues as the UK transitions away from petrol and diesel.

The proposal, due to be announced on 26 November, would take effect in 2028 following a consultation period. Based on the government’s current estimated average mileage for an EV driver of 8,900 miles a year, it is expected to cost electric car owners around £279 a year.

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