Plans to introduce a pay-per-mile taxation system for electric vehicles (EVs) could severely damage consumer demand and stall the UK's green transport transition, new research has warned.
Survey Reveals Widespread Buyer Resistance
An investigation by the consumer magazine What Car? has uncovered significant opposition to the proposed charge. The study found that 52% of prospective new car buyers would be put off purchasing an electric vehicle if they were required to pay a levy of 3p for every mile driven.
Furthermore, the data showed that 38% of respondents who were actively planning to buy an EV stated they would reconsider their decision if such a tax was implemented.
Claire Evans, consumer editor at What Car?, criticised the potential policy. "Introducing an additional tax on EVs won’t only be unpopular, it will clearly make many drivers who are intending to buy an EV rethink their plans," she said. "Coming hot on the heels of the Government’s Electric Car Grant, which stimulated demand for EVs, it sends a terrible mixed message."
Government Defends Road Pricing Consultation
The warning comes as Chancellor Rachel Reeves is expected to confirm a consultation on 'road pricing' for electric vehicles. The move aims to offset the growing loss in revenue from traditional fuel duties as more drivers switch to zero-emission cars.
Rob Hull from This is Money commented: "With the Chancellor widely expected to announce pay-per-mile taxation for electric vehicles, a survey of car buyers has warned of the immediate and devastating impact it could have on sales."
However, the Treasury has defended the need for a new system. Dan Tomlinson, Exchequer Secretary to the Treasury, argued: "If we do nothing, then by 2030 around one in five car drivers are expected to pay no fuel duty at all, while other motorists will continue to contribute an average of £480 a year."
He added: "Given all cars cause congestion and wear and tear on the roads, this is not a fair outcome. That’s why the government will introduce electric Vehicle Excise Duty (eVED) from April 2028."
EV Owners Face Growing Tax Burden
The proposed mileage charge is not the first new cost for EV owners. Since April 2025, electric vehicle owners have also been required to pay an annual road tax (VED) of £195, removing a previous financial advantage over petrol and diesel cars.
Industry observers fear that the cumulative effect of these new taxes could significantly slow the adoption of electric vehicles, just as the UK market was gaining momentum. The potential impact on EV demand is now a central concern for both manufacturers and environmental campaigners.
The government's consultation, set to be launched imminently, will seek to balance the need for fair road funding with the national objective of achieving widespread electric vehicle uptake.
