British drivers appear to slowly be coming round to the idea of EVs – but the car industry fears the Chancellor is about to bulldoze the progress being made.
Rachel Reeves should ditch this car tax plan before it’s too late (Image: Getty)
Let’s be honest. Rachel Reeves would be absolutely stark raving mad to introduce a pay-per-mile car tax charge in her Autumn Budget. It’s the wrong time and quite clearly, no one wants it. Last week, it emerged that the Chancellor is likely to introduce a 3p-per-mile charge for electric vehicles from 2028 in a bid to plug a hole in the public finances.
Fuel duty revenues are dropping fast and predicted to fall like a stone before the end of the decade as more drivers switch to electric cars. A 3p-per-mile charge would still mean EVs are cheaper to run than petrol and diesel vehicles. But it would still be a major misstep. Data released by the Society of Motor Manufacturers and Traders (SMMT) shows that second-hand electric car sales are now dramatically on the rise.
Rachel Reeves is tipped to introduce a 3p-per-mile charge for EV drivers (Image: Getty)
One in 25 used cars sold is now electric with 80,614 models swapping hands over the past three months, a staggering 44% rise on the same time in 2024. The EV industry has worked tirelessly to get into a position where it is starting to become a mainstream option and the threat of tax rises could deter this.
It’s easy to forget that petrol is still the most popular fuel type with 1,145,148 models shifting hands during the same period.
The decision to tax drivers on a mileage basis was always going to be unpopular among drivers.
Snap polling by YouGov last week found that just 43% of 5,833 Brits polled either ‘strongly support’ or ‘somewhat support’ the idea. A previous poll from Tempcover of 2,000 UK drivers found just 29% of respondents think motorists should be charged on mileage.
Motorists could soon be charged for each mile they drive (Image: Getty)
So the drivers aren’t really on side, now how about the industry which has targets to hit in terms of the number of ZEVs [zero-emission vehicles] sold? Well, the reaction to Reeves’ decision has been scathing, with some of the industry’s leading voices calling out the move as a threat to the EV market.
The AA warned that the Government’s actions could “slow down the transition to EVs”. Meanwhile, the SMMT themselves warned that Reeves’ plan could only be described as the “wrong measure at the wrong time”.
They added: “Introducing such a complex, costly regime that targets the very vehicles manufacturers are challenged to sell would be a strategic mistake – deterring consumers and further undermining industry’s ability to meet ZEV mandate targets.”
Reeves needs to listen to the voters, industry leaders and motoring experts and scrap her pay-per-mile plans before it’s too late.
