Transport · 6 November 2025
Reeves to propose 3 pence-per-mile tax for electric vehicles in November Budget
Chancellor Rachel Reeves is reportedly preparing to unveil a proposal in the upcoming 26 November Budget to charge electric vehicle (EV) owners a levy of 3 p per mile, starting around 2028 after a consultation. The move aims to close a projected revenue gap in fuel-duty income, estimated at £25-35 billion by various analyses, as more drivers switch from petrol and diesel-engined cars. On average, EV drivers could face an extra £250 yearly, though critics warn the timing may undermine the UK’s EV transition.
Reported by The Guardian · How we write briefs