Rachel Reeves ‘planning pay-per-mile tax for electric vehicles in budget’

The GuardianThursday, November 6, 2025 at 8:42:48 AM
Rachel Reeves ‘planning pay-per-mile tax for electric vehicles in budget’

Rachel Reeves ‘planning pay-per-mile tax for electric vehicles in budget’

Rachel Reeves is reportedly planning to introduce a pay-per-mile tax for electric vehicle (EV) drivers in the upcoming budget, which could add an average of £250 a year to their expenses. This new charge of 3p per mile aims to compensate for the declining revenue from traditional petrol and diesel vehicles. This move has raised concerns among EV owners, as it could undermine the financial incentives that have encouraged the shift towards cleaner transportation. The announcement is set for November 26, and it highlights the ongoing challenges in balancing road tax revenues with the transition to electric mobility.
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