Rachel Reeves' new £240 charge for drivers covering 8,000 miles under the upcoming pay-per-mile car tax system has been met with strong criticism from EVA England. The organisation responded today to the Labour government's response to the 'pay per mile' eVED consultation.
Government Confirms 3p Per Mile eVED Tax
The government has confirmed a new 3p per mile eVED tax system will be introduced from April 2028, following a lengthy consultation after Chancellor Rachel Reeves announced the system in last year's Budget. Under the scheme, an EV driver doing 8,000 miles annually would pay £240 in tax.
EVA England CEO Voices Concerns
Vicky Edmonds, Chief Executive Officer of EVA England, stated: "This policy still does not work for drivers. The Government has made one welcome change for newer EVs, but the wider scheme remains too complex, risks leaving people out of pocket and fails to give drivers the confidence they need."
She added: "At such a crucial point in the switch to electric, ministers should be making the system simpler, fairer and easier to understand, not pressing ahead with a policy whose key faults remain unresolved. This now piles pressure on the public charging review that must pave the way for affordable charging, or this transition simply won't work for drivers."
Government Defends the Policy
The government responded: "At Autumn Budget 2025, the government announced the introduction of electric Vehicle Excise Duty (eVED), a new mileage charge on electric vehicles (EV) and plug-in hybrid vehicles (PHEV), which will take effect from April 2028. Given all cars cause congestion and wear and tear on the roads, eVED has been designed to ensure EV and PHEV drivers make a fair contribution to the public finances as fuel duty revenues decline, while continuing to pay less than the equivalent fuel duty paid by petrol and diesel vehicles."
The government emphasised its commitment to the EV transition, noting that the favourable tax treatment of EVs relative to petrol and diesel cars helps address uptake concerns. It also highlighted a robust support package announced at Budget 2025, bringing total investment to over £7.5 billion over the next decade, underpinned by reinvestment of around 80 per cent of eVED revenue from the first three years.
Consultation Feedback
The consultation on eVED ran from 26 November 2025 until 18 March 2026, receiving over five thousand responses from a broad range of stakeholders. The government noted support for the principle that motorists who drive more should make a greater contribution, but key concerns raised included the potential impact on electric vehicle uptake and administrative complexity for motorists, businesses, fleets, leasing companies and MOT garages.
