Reeves accused of treating drivers ‘like a cash machine’ amid reports of pay-per-mile tax on electric vehicles
How pay-per-mile tax on electric cars would work – and what it might cost drivers
- Rachel Reeves, the Chancellor, is reportedly considering a new pay-per-mile tax for electric vehicle (EV) drivers in her upcoming Budget.
- The proposed scheme would charge EV drivers 3p per mile, potentially starting from 2028, affecting an estimated six million drivers.
- This measure is being considered as the Treasury faces a significant fall in revenue from fuel duty due to the increasing adoption of EVs.
- The Conservative Party has criticised the proposal, accusing Labour of treating motorists 'like a cash machine' to address financial shortfalls.
- The AA has warned that such a policy could be perceived as a 'poll tax on wheels' and might hinder the transition to zero-emission vehicles.