Rachel Reeves slammed over pay-per-mile tax – ‘no | Tech News
Rachel Reeves has been criticised over her plans to hit sure drivers with a new pay-per-mile car tax charge. The Chancellor has already introduced that a 3p per mile charge will apply to electric car drivers from 2028, with homeowners of hybrid automobiles charged 1.5p per mile.
The charge is being launched in a bid to offset the loss of petrol and diesel fuel responsibility charges as more street customers swap to electric automobiles. However, the plan is set to be controversial, with earlier polls suggesting street customers had been on the fence round any attainable modifications.
John Wilmot, founder and CEO of car lease deal comparability website, LeaseLoco.com, burdened motorists had began to query whether or not choosing an electric car was even value it.
John stated: “One of the massive benefits to driving an electric vehicle was that it was far cheaper to run than a petrol or diesel car, but a pay-per-mile tax risks eliminating that advantage, which could make drivers think twice about switching any time soon. It’s almost sending mixed messages. We want people to switch to electric cars but they’re dealing with limited charging infrastructure and other rising costs which can leave them questioning whether it’s even worth it.”
Meanwhile, a earlier survey of 2,000 UK drivers from Tempcover discovered that simply 29% of people imagine street customers needs to be charged on the mileage pushed. Electric automobiles homeowners used to take pleasure in free car tax payments which acted as a main incentive for a lot of to modify to electric automobiles.
However, EVs have paid tax charges to make use of the street since April 2025 when homeowners had been pressured to pay the usual Vehicle Excise Duty (VED) charge.
John added: “Lower operating prices had been a big half of the motivation for going electric. Taking that away dangers stalling the momentum we’ve constructed by giving people confidence in electric automobiles.
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