Rachel Reeves issued 9-word warning over new | Tech News

Rachel Reeves’ anticipated electric vehicle pay-per-mile car tax payment has been criticised by industry leaders and main producers, with Ford the newest to call out the unconventional thought. The Chancellor seems set to verify the introduction of a 3p per mile charge for electric car homeowners on prime of present Vehicle Excise Duty charges.

The new costs could possibly be utilized to automobiles beginning in 2028, with the new coverage hoping to offset the loss of fuel obligation revenues as more people swap to EVs. Based on average mileage, estimates have already predicted the new rule may add between £250 and £300 to annual payments. Polestar is among the many producers to criticise the transfer, whereas industry specialists such because the SMMT have additionally been sceptical.

However, the plan has been criticised by Ford UK’s managing director Lisa Brankin who has raised issues over the recognition of EVs. Speaking to the BBC, Lisa stated: “It’s certainly not the right time to do it.”

She added: “It’s really easy to sell people things they want. It’s hard to sell people things they don’t want. Electric vehicles in some instances have gone from being a great thing to being something that we’re trying to push people into.”

Data as of October 2025 reveals that battery electric automobiles make up round 22.4% of whole new car gross sales. This is up from the 18.1% recorded this time final yr however is short of the UK’s Zero Emission Vehicle (ZEV) Mandate goal which is why producers could also be involved.

For 2025, corporations are supposed to make sure that a minimum of 28% of new car gross sales are zero-emission, with gross sales behind this goal. Ford is below stress to satisfy the targets with 80% of new car gross sales by 2030 or corporations may face fines.

There are fears that the introduction of new taxes and the loss of many main incentives may deter motorists from making the swap away from petrol and diesel.

As information of the potential charge emerged, Matt Galvin, managing director for Polestar UK described a pay-per-mile payment as “farcical”

He stated: “Our Government should not be taking their focus off de-carbonising our roads, and this is a huge step backwards during a cost of living crisis, reducing confidence for many looking to switch.

“This is clearly a confused message from the Government, on one hand recently incentivising the move to zero emission driving with the Electric Car Grant and on the other planning to take this away with tax rises.”