Rachel Reeves has confirmed annual odometer checks for millions of drivers under her new pay-per-mile car tax system. The Labour Party government confirmed on Monday, July 13, that it would be ploughing on with eVED for EVs.
Details of the new mileage checks
After a government consultation, the government says it will continue to push through its new 3p-per-mile pay-per-mile car tax plan, which Ms Reeves confirmed last winter at the Budget. The consultation response confirmed that vehicles under three years old, which are not currently required to have an annual MOT, will not need additional mileage checks.
Drivers of vehicles under three years will provide an odometer reading and estimated mileage for the year ahead every time they renew their Vehicle Excise Duty.
Impact on drivers with older cars
eVed would kick in in 2028 - meaning anyone with a car made before 2025 faces an annual mileage check. This affects millions of drivers who own older vehicles, as they will now be required to submit odometer readings annually to determine their tax liability under the pay-per-mile system.
Industry reactions
Tanya Sinclair, CEO of Electric Vehicles UK, said the rule change was proof that the Government was listening to feedback 'where it mattered'. She said: 'Dropping mandatory mileage checks for cars under three years removes a significant speed bump that would have been a burden on new drivers and big fleets.'
'Where Government still needs to do better is in how it communicates its policies to drivers. We still have a mix of incentives, taxes, grants and policies which don't clearly echo its vision of an all-electric future.'
Criticism from New AutoMotive
Ben Nelmes, CEO of New AutoMotive, criticised the plans, saying they risk becoming an 'albatross around the neck of the next Chancellor and Transport Secretary'. He said: 'It is staggering that the DVLA's legacy computers are unable even to process a simple automatic refund when someone sells or scraps their car.'
'That in itself should be a massive red flag for the incoming Government about the deliverability of this policy. With uncertainty over EV targets and a risky new tax on electric motoring, drivers, businesses and investors will question the UK's commitment to the transition. New ministers should pause, take stock and get this right.'
