Electric vehicle owners to face new pay-per-mile tax – how much it will cost
- Chancellor Rachel Reeves has announced a new mile-based tax for electric vehicles in the Budget.
- From 2028-29, battery electric cars will be charged £0.03 per mile, and plug-in hybrid cars £0.015 per mile.
- An average battery electric car driver covering 8,500 miles annually could face a £255 charge in 2028-29.
- The government states the tax aims to create a fairer system for all drivers, as electric vehicles currently do not pay fuel duty.
- Ministers also intend to continue supporting the transition to electric vehicles and making their ownership more accessible and affordable.