Households across the United Kingdom are set to face a significant shift in electric vehicle charging regulations following a major announcement from the Treasury. Chancellor Rachel Reeves has confirmed the introduction of a new tax for motorists who use driveway or public charging points to power their electric vehicles, marking a pivotal moment in the nation's transition to greener transport.
A New Tax Framework for Electric Mobility
The Labour Party government has unveiled a controversial pay-per-mile tax specifically targeting owners of electric vehicles and plug-in hybrids. This new levy, known as Electric Vehicle Excise Duty, will be implemented at a rate of 3p per mile and is scheduled to come into effect from April 2028. Treasury minister Dan Tomlinson clarified that drivers will pay for their mileage alongside their existing Vehicle Excise Duty, ensuring all motorists contribute to road maintenance while maintaining incentives to switch to electric vehicles.
Importantly, the government has emphasised that eVED will not require tracking devices in cars, nor will it create a completely new tax system. Instead, motorists will simply pay for the miles they drive as part of their usual road tax arrangements. The consultation document specifies that the charge will be set at half of the equivalent rate of fuel duty for electric cars, and half again for plug-in hybrid vehicles.
Counterbalancing Measures for Fairer Charging Access
To offset the impact of the new pay-per-mile tax, the government has simultaneously introduced a comprehensive set of proposals designed to make electric vehicle charging more accessible and affordable for all residents. Transport secretary Heidi Alexander described these reforms as a "big boost for the growing British EV industry," stating they will make switching to electric vehicles "fairer, easier, and cheaper" for everyone.
The new measures include mandatory requirements for new covered car parks to include charging points, alongside potential changes to planning regulations that currently make it difficult for people without driveways to install discreet cross-pavement charging gullies. These changes could significantly benefit renters and flat-dwellers who have historically faced challenges accessing convenient home charging options, often relying on slower or more expensive public chargers.
Transforming Accessibility for Urban Residents
The proposed regulatory changes represent a potential game-changer for urban residents without private driveways. By removing planning permission barriers and introducing new protections for tenants, the government aims to make electric vehicle ownership far more accessible and affordable for those living in rented accommodation or apartments. Industry experts have welcomed these developments, with Carwow noting that for everyday drivers, these reforms could fundamentally transform the electric vehicle ownership experience.
These combined measures reflect the government's dual approach to electric vehicle policy: ensuring all drivers contribute fairly to road maintenance through the new tax system while simultaneously removing barriers to electric vehicle adoption through improved charging infrastructure and regulatory reform. The announcement comes as part of broader efforts to support the transition to sustainable transport while maintaining fairness across different household circumstances and living arrangements.
