Drivers are pushing back against the Labour Party's new pay-per-mile tax, with one in three now refusing to switch to electric vehicles. Chancellor Rachel Reeves has confirmed that from 2028, electric vehicle (EV) drivers will face a 3p charge per mile, meaning those covering 10,000 miles annually could pay an extra £300.
Survey Reveals Growing Reluctance
A recent survey found that 31% of drivers are more reluctant to go electric following the announcement. The proposed pay-per-mile taxes were viewed as off-putting by the same percentage of respondents.
Matt Crole-Rees, motor expert at Confused.com, commented: "Even more changes are coming in 2028, including the eVED pay-per-mile tax and annual increases. So, it's important that drivers understand these changes, why they are put in place, and the impact they can have on their spending."
Industry Concerns
Melanie Lane, chief executive of EV charging provider Pod, said the decisions "have further complicated the outlook for motorists and manufacturers that are looking for clarity on their commitments to the EV sector." She welcomed the extension of the Electric Car Grant but warned that introducing the new pay-per-mile levy "is at odds" with the Government's messaging about "backing the switch."
"This confused policy approach will shake consumer confidence and potentially jeopardise investment in the sector at a critical moment," she added. "We are already falling behind on the ZEV mandate that expects one in three cars sold to be zero-emissions next year and today's confirmation of additional mileage costs from 2028 will penalise motorists and manufacturers who are fulfilling their end of the bargain."
Mr Crole-Rees also advised drivers to stay informed: "It's important for drivers to understand how the new EV rates and rules apply to specific cars to stay on top of increasing costs. It's important to remember that these anticipated changes may also change before 2028, so drivers should monitor relevant announcements closely."
