Andy Burnham is under pressure to abandon the planned pay-per-mile car tax system for electric vehicle (EV) drivers, which would impose a £240 annual charge on those covering 8,000 miles. The system, known as the electric vehicle excise duty (eVED), was announced by former Chancellor Rachel Reeves in her final Budget before being sacked by Burnham on Monday night.
Industry Calls for Reconsideration
Peter Golding, CEO of fleet software company, stated that the zero emission vehicle (ZEV) mandate and the new 3p-per-mile tax on EVs are likely the top issues fleets want reconsidered. “We’ve heard very little so far about transport from the new Prime Minister, but he does keep reiterating themes of being both business friendly and making life easier and less financially stressful for ordinary people,” Golding said.
“Both the ZEV mandate and eVED would seem to us to fall into these categories. They are policies that are expensive and add complication for companies operating cars and vans, and for motorists, too.”
Impact on Fleets and Motorists
The 3p-per-mile rate translates to £240 for drivers doing 8,000 miles annually. Golding expressed hope for dialogue with new ministers: “While we understand that fleet is not at the top of the Government’s agenda, it would be positive for the sector to be able to open discussions with the appropriate new ministers and their teams in a matter of weeks or months to express our concerns.”
He added: “There have been noises from within the Burnham camp that they’d like to listen more closely and hopefully that approach will extend to policies that affect fleets. Especially, if we are able to see further changes to eVED or secure a delay, that would be a win for the fleet sector.”
Skills Gap and Road Safety Concerns
Nick Connor, CEO of the Institute of the Motor Industry (IMI), highlighted broader issues: “Before the general election, Labour promised to champion the motor industry – a sector fundamental to the UK's economy and its social infrastructure. Two years on, that promise has not been delivered, and the skills gap in our sector has become a road safety issue.”
Connor warned that vehicles are evolving rapidly with electrification, connected systems, and automated driving technology. “The people who maintain, repair and recover them must be demonstrably competent, yet apprenticeship starts are falling and qualification levels are nowhere near where demand requires.”
He urged Burnham to “mandate IMI TechSafe, protect the rigour of automotive apprenticeships, and give our 800,000-strong workforce the recognition and investment it deserves. The IMI is ready to work with him from day one.”
