The UK's New EV Pay-Per-Mile Tax: What Does It Mean for Drivers?

Today's UK Budget introduced a new pay-per-mile tax for electric vehicles - 3p per mile for EVs and 1.5p for plug-in hybrids, starting in 2028. The government argues it's needed to replace falling fuel-duty revenue as more drivers go electric.

At the same time, the Budget also includes fresh investment in charging infrastructure and EV incentives, which is welcome news for the industry and customers alike.

What does that mean for the EV Industry

As a company committed to accelerating the switch to cleaner transport, this new tax could discourage EV adoption just as more drivers are considering the move. Additional running costs (even small ones) can make the switch feel less attractive, especially during a cost-of-living squeeze.

The upside

We strongly back the new funding for charging networks. Better, more reliable access to charging is essential if the UK is to meet its climate goals, and it boosts confidence for anyone thinking about going electric. No more range-anxiety!  

What next?

This announcement raises important questions:

• Is a mileage tax the right way to replace fuel-duty revenue?
  
  
  

• Could it slow down EV uptake at a crucial moment?
  
  
  

• How can the UK balance fair taxation with encouraging cleaner transport?
  
  
  

We believe the transition to EVs should be supported, not complicated - and we're keen to hear what drivers, businesses, and policymakers think.