In a significant pre-announcement blunder, the Office for Budget Responsibility (OBR) has accidentally confirmed Chancellor Rachel Reeves' plans to introduce a new pay-per-mile tax for electric vehicle drivers. The fiscal forecast was published online hours before the official Autumn Budget statement was due to be delivered.
The Leaked Road Tax Details
According to the mistakenly released OBR document, the new charging structure will come into force in April 2028. It outlines that drivers of battery electric cars will face a charge of around 3p per mile, while owners of plug-in hybrid cars will pay a lower rate of 1.5p per mile.
The report confirms that these rates will increase annually in line with the Consumer Prices Index (CPI). This new levy is designed specifically to compensate for the lost revenue from fuel duty, as more motorists switch from petrol and diesel cars to electric models.
Financial Impact on Drivers
The introduction of a per-mile charge means electric vehicle owners will pay for every journey they make. For a long-distance trip, such as driving from London to Edinburgh, the additional cost could reach as much as £12 on top of any other existing road fees.
This change is expected to affect a significant portion of the population, with forecasts suggesting that around six million people will be electric vehicle owners by the time the new tax takes effect in 2028.
Broader Budget Leaks and Implications
The OBR's error also revealed other key measures from the Chancellor's Budget. A central feature is the planned freeze on income tax thresholds for an additional three years from 2028-29.
This freeze is projected to raise £8.0 billion and is part of a set of personal tax changes expected to increase Treasury receipts by £14.9 billion in 2029-30. The document notes that this policy could impact millions as rising wages push more earners into higher tax bands, contradicting Reeves' previous statement that such a move would "hurt working people."
The leaked report also mentioned the introduction of a mansion tax. The OBR has since apologised for the premature publication of its forecast.
