Plans to introduce a 3p-per-mile charge for electric vehicle (EV) drivers risk undermining net zero targets, an expert has warned. Chancellor Rachel Reeves announced in November's Budget that from April 2028, battery EV owners would face a 3p-per-mile Vehicle Excise Duty (VED) levy, prompted by falling fuel duty revenues as more motorists switch to electric cars.
The Chancellor said the measure would ensure drivers are taxed according to how much they drive, not just the type of car they own. She also pledged £200 million for EV charging infrastructure and raised the expensive car supplement threshold for EVs to £50,000, which she claimed would save over one million drivers £440 annually.
However, John Wilmot, founder of car lease comparison platform LeaseLoco.com, warned the pay-per-mile tax could discourage motorists from going electric. He cited YouGov figures showing 55% of prospective new car buyers still consider petrol engines, while only 37% look at electric options. Wilmot noted that EV owners already face rising insurance costs, VED road tax, and higher home charging fees.
Wilmot said: "One of the massive benefits to driving an electric vehicle was that it was far cheaper to run than a petrol or diesel car, but a pay-per-mile tax risks eliminating that advantage, which could make drivers think twice about switching any time soon." He added that lower running costs were a huge incentive for going electric, and removing that could stall momentum.
The measure is not due to take effect until 2028, but Wilmot warned it could slow progress toward net zero. "Understandably, drivers want clarity before committing to making the switch to electric and it's hard to have confidence when the rules and the costs keep changing," he said.
