Motorists in the UK, particularly those driving electric vehicles, are facing a significant new annual charge under plans from the Labour government. The proposed VED+ scheme, a pay-per-mile tax, is expected to come into effect in 2028 and could add an average of £300 per year to the costs of drivers covering around 10,000 miles.
What is the new VED+ charge?
Chancellor Rachel Reeves has proposed the new VED+ charge, which would see drivers pay for road usage based on the miles they travel. The potential rate is estimated at around 3p per mile. This new levy is specifically designed to ensure that electric vehicle (EV) owners, who currently do not pay fuel duty, begin contributing to road maintenance costs.
The policy has been met with immediate and fierce criticism from motoring campaigners. Howard Cox, the founder of the campaign group FairFuelUK, has been a leading voice against the proposal, stating it "can never be a fair way" to tax the nation's 37 million drivers.
Backlash from campaigners and drivers
Howard Cox did not mince words in his critique, labelling the pay-per-mile plan an anti-motorist "net-zero cash grab". He highlighted that it would disproportionately affect those in rural areas and individuals who need to travel long distances for work or family.
Beyond the financial impact, Cox raised significant concerns about privacy and bureaucracy. "Introducing such a system will raise privacy concerns, given the potential for in-car tracking, and add further layers of bureaucracy, especially if existing taxes, such as fuel duty or Vehicle Excise Duty (VED), are not abolished alongside the new charge," he explained. He pointed out that a form of pay-per-mile taxation already exists through Fuel Duty and VAT on petrol and diesel.
A sense of betrayal among EV owners
The reaction on social media platforms like X (formerly Twitter) underscores a feeling of deception among early adopters of electric vehicles. Replying to Howard Cox's post, one user, John Parry, expressed the frustration of many EV drivers.
He argued that drivers were actively encouraged by the government to purchase EVs, which often come with a higher price tag and thus generated more VAT revenue. This was coupled with an initial commitment of no road tax, a promise that has since been eroded. Parry noted that small EVs now pay £200 in road tax, compared to just £20 for a small diesel Fiat. With high motorway charging costs already a burden, this new surcharge is seen by many as destroying the financial incentive to switch to electric transportation.
The debate over how to fairly tax vehicles in an increasingly electric age is set to intensify as the proposed 2028 start date for VED+ approaches.
