Lisa Brankin, managing director of Ford UK, has cautioned Chancellor Rachel Reeves against increasing taxes on electric vehicles (EVs) in the upcoming Budget, arguing that such measures could deter drivers from switching from petrol and diesel cars. Reports suggest Reeves is considering a pay-per-mile charge on EVs from 2028, potentially adding 3p per mile alongside other road taxes to compensate for falling revenue from fossil fuel vehicles.
Brankin described the proposed levy as “another brake” on already fragile EV demand, telling the BBC that electric vehicles have shifted from being a desirable option to something consumers feel pressured into. Her comments come as Ford and other carmakers face the government's target for 80% of new car sales to be electric by 2030.
The government reintroduced an EV grant of up to £3,750 in July after industry lobbying, which has helped boost sales to record highs. However, Brankin warned that without such support, Ford would struggle to meet the 2030 target. She noted that the market is “distorted” by heavy discounting and low second-hand EV values, and that customer demand has not kept pace with government ambitions.
Brankin urged Reeves to retain lower company car tax rates for EVs, which incentivise businesses to green their fleets. Ford employs about 6,000 people in the UK, including at its Dagenham diesel engine plant, which is set to produce engines until 2030. Brankin said no decisions have been made on the plant's long-term future beyond that date.
A Treasury spokesperson stated that fuel duty currently covers petrol and diesel but not EVs, and that the government seeks a fairer system while supporting the EV transition through £4bn in investments, including grants. They added that further measures to make EV ownership more convenient and affordable will be considered.
