Electric vehicle owners will be required to pay a new 3p-per-mile tax from 2028, Chancellor Rachel Reeves confirmed today in the Autumn Budget — marking the UK’s first dedicated mileage charge for zero-emission cars.
The measure is designed to offset the sharp decline in fuel duty revenue, which has fallen year-on-year as more motorists switch from petrol and diesel to electric alternatives. The Treasury argues that long-term changes are needed to protect public finances as the transport sector transitions to clean energy.
Shane Pither, EV expert at Select Car Leasing, said the announcement represents a significant shift in government policy — and will force many drivers to reassess their running costs.
“Today’s announcement signals a notable shift in the sustainable transport market as the government begins moving revenue focus away from petrol and diesel vehicles,” he said. “Confirmation from the Chancellor will understandably prompt concerns among current EV drivers and those considering making the switch.”
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