EV drivers would face 3p-a-mile charge on top of other road taxes to offset falling revenue from petrol and diesel cars
Rachel Reeves is drawing up plans for a new pay-per-mile tax for electric vehicles to announce in this month’s budget worth an extra £250 a year on average, according to reports.
Under the plans expected to be announced on 26 November, EV drivers would face a new charge of 3p a mile on top of other road taxes to offset falling revenue from petrol and diesel cars as drivers switch to greener options.
The chancellor will reportedly argue that this will be fairer, as drivers of petrol or diesel cars currently pay £600 a year in fuel duty, on average. The move will also help her plug a fiscal hole of between £20bn and £30bn by the end of the parliament.
A government spokesperson told the BBC: “Fuel duty covers petrol and diesel, but there’s no equivalent for electric vehicles. We want a fairer system for all drivers.”
