A quarter of businesses have warned Andy Burnham that the government's planned pay-per-mile car tax, set to be introduced from 2028, will make claiming travel expenses significantly more difficult. The policy, originally announced by former Chancellor Rachel Reeves, will see electric vehicle (EV) drivers charged 3p per mile under the new eVED system.
Survey Reveals Widespread Concern
A survey conducted by Venson Automotive Solutions found that 26% of drivers believe the practical implications of eVED will hinder their ability to claim business travel expenses. Additionally, 62% of drivers stated that the introduction of eVED on electric cars will discourage them from switching to EVs, with nearly a quarter (24%) confirming it will have a significant impact on their future purchase decisions.
While almost a quarter of motorists support the introduction of eVED, 46% consider it unfair. The rate of 3p per mile means drivers covering 10,000 miles annually would face charges of £300, while those doing 8,000 miles would pay £240, and 7,000 miles would result in £210 in taxes.
Impact on Two Million EV Drivers
There are currently two million electric vehicles on UK roads that will be subject to the new charges. Simon Staton, client management director at Venson Automotive Solutions, described the negative reaction as "hardly surprising." He added: "The fact that almost two-thirds of drivers say they are put off switching to an electric car because of the tax should ring alarm bells for policymakers."
Staton emphasized that the introduction of eVED risks undermining the government's efforts to encourage EV adoption, particularly among fleet operators who have been at the forefront of the transition. "The sector is now rewarded with only a two-year window to incorporate an incredibly complex vehicle mileage reporting system into their day-to-day operations to comply with eVED," he said.
Government Commitment to eVED
The government, under Prime Minister Andy Burnham, is pressing ahead with the policy. Transport Secretary Heidi Alexander and Minister for Roads Lilian Greenwood have retained their positions following the Cabinet reshuffle. The government has already consulted on the pay-per-mile car tax and published its commitment to it earlier this month.
The eVED system is part of broader efforts to address the shortfall in fuel duty revenue as more drivers switch to electric vehicles. However, critics argue that the tax penalizes early adopters of EVs and could slow down the transition to cleaner transport.
