Thu, 06 Nov 2025

Thu, 06 Nov 2025 EV drivers could face new tax in Budget

The BBC understands there have been "conversations" within government about the possibility of a new levy on EVs.

* Drivers of electric vehicles (EVs) may face a new tax in this month's Budget, with the government considering a pay-per-mile charge.
* The proposed tax would charge EV drivers 3p per mile, on top of other road taxes, amounting to an extra £12 for a journey from London to Edinburgh.
* Drivers of hybrid cars would also be charged, but at a lower rate.
* The government wants a "fairer system for all drivers" and claims that the transition to EVs has left a shortfall in government revenues.
* Shadow chancellor Mel Stride has disagreed with the plan, calling it a "tax raid".
* The Society of Motor Manufacturers (SMMT) has also pushed back against the proposal, saying it would be "the wrong measure, at the wrong time".
* Car-selling platform Autotrader's CEO Nathan Coe says that introducing pay-per-mile taxes on EVs would increase their running costs and affect demand.
* Liberal Democrat Treasury spokesperson Daisy Cooper has criticized the plan, saying it is "unfair and short-sighted".
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