Labour has insisted that the number of electric vehicles sold in the UK will not be impacted by a new pay-per-mile tax. Minister Simon Lightwood MP told The Express that existing schemes will ensure that EVs remain cheap enough for people to want to buy them. On the new 3p per mile levy, to be introduced in April 2028, Mr Lightwood said: "Look, I think it's important to say that this is about fairness. EV drivers don't pay fuel duty at the pump, which other people do."
He added: "I think the average for a driver per year at the moment is around - what - £480. And that isn't fair. All cars need to be contributing to congestion and wear and tear on our roads. EVs will still pay, under our plans, half what petrol cars pay. So it still keeps them cheaper, still keeps them a greener choice. And that'll come in from April, 2028. And a billion pounds of extra pothole funding has been delivered thanks to this as well.
"So, drivers benefit from better roads.
"But also on top of that, because obviously there's comments around it being a kind of reverse incentive for buying electric vehicles as well, we are extending the boost, the EV grant, that £3,750 grant, with the £3billion, extending that further as well."
When pressed on whether he expects to see any fall in electric vehicle sales in the coming years, the minister said: "Look, we've already seen 35,000 people make the switch already.
"It's a hugely popular scheme. Obviously, we're extending that out to 2030, with that £1.3billion of extra funding.
"I'm confident that people will continue to choose EVs into the future.
"It still will be cheaper to drive an electric vehicle, it will still be greener to drive an electric vehicle. So still a really attractive choice for consumers."
He concluded: "I'm confident that we'll continue to see this being a really attractive choice for consumers."
Rhydian Jones, motoring expert at Confused.com, however, suggested that people might be put off purchasing an EV after hearing what Ms Reeves had to say in her Budget.
He said: "A pay-per-mile system could create a fairer, usage-based approach for all drivers, but it also risks discouraging those who have already switched to an EV or are considering it based on the promise of lower long-term costs.
"Any new system must continue supporting drivers who are trying to make greener choices.
“Our latest research shows just how sensitive this issue is for motorists.
"We found that 2 in 5 (41%) drivers already feel there aren’t enough incentives to switch to an electric vehicle.
"And with the average EV driver travelling between 6,000 and 7,000 miles a year, the new pay-per-mile charge could mean paying just over £200 annually. For many, this is an unexpected cost that could slow progress towards the 2030 transition and deter drivers who are trying to make greener choices.
“To help drivers understand what these changes could mean for them, our new EV Tax Calculator allows drivers to estimate exactly how much they may end up paying under the proposed tax changes.”
