Key takeaways
- Electric cars will pay 3p per mile and plug-in hybrids 1.5p per mile from April 2028.
- The same Budget put fresh investment into charging infrastructure and EV incentives.
- We think the transition to EVs should be supported, not complicated.
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.
The industry
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.
Charging investment
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
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. Tell us at plugmein@fulltothebrim.com.
Read next: Part S EV charging requirements for new homes and Brim Chargers live chat.