The Chancellor's pay-per-mile tax on electric cars will create a stark 'postcode penalty', hammering drivers in rural and poorer areas, we can reveal.From April 2028, Rachel Reeves plans to charge electric vehicle (EV) owners 3p for every mile driven. Plug-in hybrids (PHEVs) - capable of up to 70 miles on electric power - will face a 1.5p-per-mile levy on top of fuel duty under her electric vehicle excise duty (eVED) raid.The policy is designed to plug a growing hole in Treasury finances as fuel duty receipts fall alongside petrol and diesel sales.The Office for Budget Responsibility (OBR) puts that shortfall at around £1billion a year - a gap Reeves now intends to close by taxing EV use for the first time.But analysis by the British Vehicle Rental and Leasing Association (BVRLA) warns the burden of her tax sting will weigh heaviest on those least able to absorb it.EV drivers in areas with poor public transport - often with lower incomes - will face the steepest bills, with some paying up to £267 on top of the £200-a-year standard VED rate, it said.With higher insurance premiums and rising charging costs already biting, the added levy risks piling further pressure on households switching to electric.BVRLA chief executive Toby Poston said the policy 'may appear fair on paper' - but in reality 'falls hardest on the drivers least able to avoid it'.
Rachel Reeves' pay-per-mile tax on EVs will be a 'postcode penalty'
BVRLA chief executive Toby Poston said the policy may appear 'fair on paper' - but in reality 'falls hardest on the drivers least able to avoid it'.







