### New Pay-Per-Mile Tax Proposal: A Shift in EV Taxation The UK government, under Chancellor Rachel Reeves, is considering a new pay-per-mile tax aimed at electric vehicle (EV) owners, set to be introduced in 2028. This initiative is a response to declining fuel duty revenues as more drivers transition from petrol and diesel vehicles to electric alternatives. The proposed tax is expected to charge drivers 3p per mile, potentially adding up to £250 to the annual costs for the average EV owner. This move has sparked significant debate regarding its implications for consumer confidence and the overall uptake of electric vehicles in the UK [https://www.birminghammail.co.uk/motoring/motoring-news/new-3p-pay-per-mile-32831236][https://www.chroniclelive.co.uk/news/uk-news/exact-start-date-drivers-forced-32830891]. ### Structure of the Proposed Tax and Its Implications 1. **Tax Overview**: - A 3p-per-mile charge for EV drivers is being proposed to compensate for lost fuel duty revenue. - The tax is expected to be implemented in April 2028 following a public consultation [https://www.highwaysindustry.com/ev-drivers-could-face-pay-per-mile-tax-in-upcoming-budget]. 2. **Financial Impact**: - The average EV driver could face an additional cost of approximately £250 per year due to this new tax [https://www.birminghammail.co.uk/motoring/motoring-news/six-million-drivers-face-250-32820946]. - The government anticipates that this tax could generate around £1.8 billion annually [https://www.freemalaysiatoday.com/category/business/2025/11/07/uk-govt-considers-electric-vehicle-tax]. 3. **Public Reaction and Criticism**: - Critics have labeled the tax as a "poll tax on wheels," arguing it unfairly targets EV drivers who are already contributing to the transition to greener transport [https://www.independent.co.uk/news/uk/politics/rachel-reeves-budget-electric-cars-pay-per-mile-tax-b2859702.html]. - Concerns have been raised about how this tax might affect consumer confidence in electric vehicles and the government's broader environmental goals [https://www.am-online.com/news/government-mulls-2028-pay-per-mile-tax-on-evs-amid-revenue-shortfall-concerns]. ### Supporting Evidence and Data - **Projected Revenue**: The proposed 3p-per-mile tax is expected to raise **£1.8 billion** annually for the Treasury [https://www.freemalaysiatoday.com/category/business/2025/11/07/uk-govt-considers-electric-vehicle-tax]. - **Cost to Drivers**: Average costs for EV drivers could increase by **£250** per year, impacting around **six million drivers** [https://www.birminghammail.co.uk/motoring/motoring-news/six-million-drivers-face-250-32820946]. - **Public Sentiment**: The tax has been criticized as a potential deterrent to EV adoption, with some labeling it as treating drivers "like a cash machine" [https://www.independent.co.uk/news/uk/politics/rachel-reeves-budget-electric-cars-pay-per-mile-tax-b2859702.html]. ### Conclusion: A Controversial Shift in EV Taxation In summary, the proposed pay-per-mile tax for electric vehicles represents a significant shift in how the UK government plans to generate revenue from the growing EV market. 1. **Tax Implementation**: The 3p-per-mile charge is set to be introduced in 2028, targeting EV owners to offset declining fuel duty revenues. 2. **Financial Burden**: This tax could add approximately £250 to the annual costs for the average EV driver, affecting millions across the UK. 3. **Public Backlash**: The proposal has faced criticism for potentially undermining the government's environmental goals and for being perceived as an unfair financial burden on EV drivers. The outcome of this proposal will likely depend on public consultation and the government's ability to balance revenue needs with the promotion of sustainable transport solutions [https://www.chroniclelive.co.uk/news/uk-news/exact-start-date-drivers-forced-32830891][https://www.theguardian.com/money/2025/nov/06/electric-vehicles-pay-per-mile-tax-rachel-reeves-budget].