by Ben Riley-Smith at The Telegraph
Electric vehicles face new levy as Chancellor scrambles to make up for falling fuel duty revenue
Electric vehicle (EV) drivers will be hit with a new pay-per-mile tax in the Budget, The Telegraph can reveal.
Under current plans, to be announced by the Chancellor on Nov 26, drivers of electric cars will be charged 3p per mile on top of other road taxes.
The scheme, set to kick in from 2028 after a consultation, will mean the average driver faces paying an extra £250 a year.
The Treasury will make the move amid falling fuel duty revenue as people move from petrol to electric cars. Up to six million people are set to be driving EVs by the time the tax comes in.
Electric car sales continue to rise as petrol and diesel is phased out
UK car registrations by fuel type, year-to-date
| Battery EV | 299,733 | 386,244 |
28.9%
|
|---|---|---|---|
| Plug-in hybrid EV | 138,775 | 190,240 |
37.1%
|
| Hybrid EV | 223,908 | 241,919 |
8.0%
|
| Petrol | 889,356 | 814,154 |
−8.5%
|
| Diesel | 106,610 | 90,563 |
−15.1%
|
Source: SMMT
Ministers will frame the move as one of fairness, as drivers of petrol cars currently pay £600 a year on average in fuel duty.
They will also argue that it is different from…
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