Rachel Reeves set to slap drivers with new £300 | Tech News
Rachel Reeves is set to slap British motorists across the face as soon as again, with new car tax charges set to hammer British street customers who rely most on their autos. Under new guidelines outlined by the Chancellor, sure street customers will quickly be charged based mostly on how far they journey, with a new pay-per-mile price within the pipeline for 2028.
The new Electric Vehicle Excise Duty (eVED) charge will see street customers pay 3p per mile to get behind the wheel of absolutely EV machines, with hybrids charged at 1.5p per mile. The value signifies that electric car customers taking over the 837-mile journey between John O’Groats and Land’s End may have to pay £25.11 in tax, whereas these heading 100 miles between Oxford and Cambridge can pay £3.
The 3p per mile price means somebody travelling the UK average of 10,000 miles every year may have to cough up £300 to retain their freedoms. The new expenses have been launched to offset the loss of petrol and diesel fuel responsibility as more street customers change away from combustion fashions to electric automobiles.
HMRC knowledge reveals fuel responsibility receipts for April 2025 to August 2025 are £10bn, down £0.1bn from the identical period within the earlier quarter. The Office for Budget Responsibility (OBR) forecast that fuel responsibility revenues would symbolize simply 2% of whole tax revenues in 2025/26.
Bosses advised the transfer was the “wrong policy” on the flawed time, whereas EV consultants additionally raised issues that it might finally scale back electric car gross sales.
Dan Tomlinson, Exchequer Secretary to the Treasury, stated: “At Autumn Budget 2025, the government announced the introduction of Electric Vehicle Excise Duty (eVED), a new mileage charge for electric and plug-in hybrid cars, which will come into effect from April 2028.
“Drivers will pay for their mileage alongside their existing Vehicle Excise Duty (VED).”
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