A new pay-per-mile car tax of 3p per mile for electric vehicle (EV) drivers could effectively rise to 11p per mile for some motorists, according to analysis by consumer group Which?. This increase combines the proposed tax with the existing cost of charging EVs, revealing a significant financial impact on certain drivers.
Which?’s research highlights that home charging currently costs around 8p per mile on average. When combined with the 3p per mile tax introduced by the Labour Party Chancellor, the total expense for these drivers could reach 11p per mile. This comes amid rising energy prices, with the October increase in the energy price cap by 2% further inflating home charging costs.
Conservative Party shadow transport secretary Richard Holden criticized the tax, arguing that it unfairly targets motorists. “Families are not an ATM for Rachel Reeves,” Holden stated, referencing Labour leaders, “yet under Labour, everyone who relies on a vehicle faces another financial burden.”
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In response, a government spokesperson defended the move, emphasizing the need for fairness across all road users. They explained, “Fuel duty covers petrol and diesel, but there’s no equivalent for electric vehicles. We want a fairer system for all drivers, while supporting the transition to electric vehicles through a £4 billion investment, including grants that cut upfront costs by up to £3,750 per eligible EV.”
The spokesperson also hinted at potential future measures to make EV ownership more affordable and convenient, balancing taxation with support.
Edmund King, president of the AA, urged caution. “The Treasury is losing fuel duty revenue as more drivers switch to electric,” he said, “but the government must be careful not to slow the transition to EVs. Zero-emission vehicle sales currently stand at 22%, below the 28% target. We need clarity on whether these new taxes will be fair or simply a ‘poll tax on wheels.’”
As the UK pushes toward cleaner transport, the debate over how best to fund road infrastructure while encouraging EV adoption continues fervently.