Rachel Reeves has just slapped motorists around the face as a final parting present. One set of road users will be absolutely furious with a new two-tier approach.
Days before leaving office, the Treasury published more details on Reeves' controversial electric pay-per-mile car tax fee, set to launch in April 2028. Electric vehicles (EVs) will pay 3p per mile to use the roads, with hybrids set to be charged 1.5p per mile regardless of where they drive, meaning those using the roads most will be hit hardest.
Rural Drivers Face Higher Costs
Motorists travelling in the countryside will pay more than urban motorists. Respondents to the consultation had raised fears that there could be a potential impact on groups more reliant on private vehicles.
Those living in rural areas can't use public transport like city residents, and many rely on their vehicles every single day.
Earlier this spring, Ginny Buckley, chief executive of Electrifying.com, warned that motorists living in the countryside would be most impacted by the new fee. Ginny guessed it to a tee, warning there was real danger the new rule will create an “EV postcode penalty”.
Average Annual Costs
The Electric Car Scheme also predicted that rural communities could pay an average of £156 per year compared to £76 for those making fewer trips in the city. The new rule means that the UK looks set for two-tier motoring, with road users punished for upping sticks and leaving the city.
It smells like a policy cooked up in Westminster, with politicians appearing unaware of how the policy could impact the country.
Government's Argument
The Government argues that the design of eVED is intended to mirror fuel duty contributions of petrol and diesel vehicles, with rural drivers therefore already paying more as they consume more fuel. That's a valid argument, but it loses sight of the fact that electric cars were completely tax-exempt just over 12 months ago.
Avoiding tax was a major incentive for making the switch to electric models. Fees were always going to rise eventually, but since April 2025 EV owners are being hit from all angles.
First it was the standard VED fee, now at £200, followed by luxury Expensive Car Supplement fees. A new pay-per-mile charge is just the latest instalment, and rural motorists will be the most affected.
