Rachel Reeves has finally gone too far – drivers | Tech News

Rachel Reeves might have simply hammered the ultimate nail within the coffin for electric automobiles in Britain. For years, politicians have urged drivers to make the change from petrol and diesel machines to electric automobiles, with cheaper operating prices heralded as one of the main incentives. 

EV homeowners used to benefit from the benefit of free Vehicle Excise Duty, a essential motivation that no doubt helped persuade many motorists to make the change. A earlier ballot of 6,000 people from FleetNews discovered that 69% of drivers stated “price” and “tax benefits” were their main reasons for choosing an electric model. A former EVA England report also found that almost a third of petrol and diesel drivers said lower running costs were the primary motivation to switch.

That was until Rachel Reeves decided to press ahead with plans to change the rules last year, introducing the first EV car tax last April. Oh well, it was only £10 a year for brand new electric cars and a £195 standard rate charge for models registered after 2017. 

It looked hardly anything when compared to Reeves’s doubling of petrol and diesel first-year rates to as high as £5,490. However, news of a 3p pay-per-mile charge for EV drivers on top of existing tax from 2028 will hit many road users like a sledgehammer, with early predictions suggesting that bills could rise by £250 per year. 

A journey between Cambridge and Oxford would cost vehicle owners around £3, with drivers likely to pay £12 to drive between London and Edinburgh. Although many see a mileage charge as more fair, these fees are controversial as some will benefit more than others.

Work from home? You’re likely to save money. Travel up and down the country commuting, and you’re paying more. What’s been interesting to witness is the reaction from industry leaders hours after the news was leaked, with genuine concern over what this means for the future of electric cars on the road. 

The Society of Motor Manufacturers and Traders (SMMT) stressed the move would be “the wrong measure at the wrong time” at a pivotal second within the UK’s EV transition. They worry the transfer might deter customers, and in flip undermine car producers’ potential to fulfill the ZEV mandate targets.

AA President Edmund King explained: “The Government has to tread carefully [otherwise] their actions [could] slow down the transition to EVs. The ZEV mandate for 28% of new car sales to be zero emissions this year will not be met as sales are running at just 22%.”

Electric cars are on the rise, but they are yet to become truly mainstream with brand new petrol models still accounting for most new cars sold (64,360 petrol cars vs 36,830 electric in October 2025). Professor ManMohan Sodhi, Professor of Operations and Supply Chain Management at Bayes Business School, also raised fears. 

He suggested that although a 3p-per-mile fee is “not unreasonable”, the charge will be running through drivers’ minds as they stand at the dealership forecourt. 

Professor Sodhi explained: “The move will be widely condemned for sending mixed messages about EV adoption, and without doubt there will be movement away from pure EVs at the very least.”

Labour is forcing manufacturers to build more electric cars with strict production ZEV mandate criteria and then at the same time make it even harder to sell them to the public. Does Labour want car firms to simply go bust? Reeves and Labour need to decide what’s more important in 2025. Meeting their push for EV adoption, or filling their supposed £50billion black hole in public finances. 

Reeves ought to have delayed her pay-per-mile payment till at the least 2030 or past when electric automobiles have actually reached the lots. Pushing this by means of solely dangers the UK’s electric car future at its most vital crossroads.