Well, it had to happen sooner or later. The Government’s finally realised that as Britain’s roads fill with silent, battery-powered chariots, the Treasury’s piggy bank is sounding suspiciously empty. No petrol, no diesel, no fuel duty. And so, in a move that feels equal parts inevitable and ill-timed, ministers are sharpening their pencils and scribbling a new entry into your motoring expenses: a 3p-per-mile tax on electric vehicles.
Yes, you read that right. The same EVs we’ve been urged to buy to save the planet are now getting their own version of the fuel duty sting. Because apparently, saving the world doesn’t exempt you from paying for it.
According to The Telegraph, BBC, and Financial Times, this new “VED-plus” charge is pencilled in for 2028, pending a consultation. It’ll sit neatly beside the £195 annual Vehicle Excise Duty (VED) that EV owners will already be paying by then. Do the maths: if you cover 8,000 miles a year in your whisper-quiet hatchback, that’s about £435 a year in road charges. Congratulations — you’ve just electrified your fuel bill.
The Treasury reckons it could raise a tidy £1.8 billion a year by the early 2030s — which, funnily enough, is just about what’s missing from the government’s revenue as more drivers swap petrol pumps for plug sockets.
The Industry’s Response: “Are You Mad?”
Predictably, the Society of Motor Manufacturers and Traders (SMMT) isn’t impressed. They’ve called the proposed move “entirely the wrong measure at the wrong time.” Their argument? It’ll scare off would-be EV buyers just when the UK needs them most to meet its zero-emission vehicle (ZEV) mandate targets.
They’ve got a point. EV adoption is still fragile — 1.3 million electric cars on the road sounds impressive until you remember there are roughly 33 million cars in the UK. The market’s barely out of nappies, and now the government wants to tax the baby formula.
SMMT chief exec Mike Hawes (and the entire automotive industry, quietly) is basically shouting: “Don’t tax what you’re trying to sell.” Introducing a complex, costly new tax system before the EV transition has fully taken root risks sending buyers straight back to petrol forecourts — and investors straight to Germany or the US.
Enforcement: The Mileage Guessing Game
The plan, as reported, is for EV drivers to estimate their annual mileage when paying VED. If you drive more than you guessed, you pay extra. Drive less? You get credit next year.
So… honesty boxes for motorists, then. That’s going to end well.
No one seems to know how the government plans to verify mileage. Annual MOT readings? Mandatory tracking apps? A charming HMRC inspector checking your odometer over tea? The details are as fuzzy as a first-generation reversing camera.
The AA and Industry Voices: Proceed With Caution
Even the AA’s usually diplomatic president, Edmund King, has urged the government to “tread carefully.” Meanwhile, James Court from Octopus Electric Vehicles called the idea “self-defeating,” warning that “now would be far too soon.”
And they’re right — the EV market is growing, but it’s not yet robust enough to shrug off this kind of hit. Buyers are already wary of high upfront costs, patchy charging infrastructure, and residual value anxiety. Add a pay-per-mile tax on top and you’ve got a recipe for range anxiety of the fiscal variety.
Let’s be clear: road taxation does need reform. EVs shouldn’t be permanently tax-free; roads don’t repair themselves. But this feels like a knee-jerk policy dressed up as fairness. Instead of a smart, progressive system based on emissions, efficiency, or actual road wear, we’re getting a glorified electricity meter strapped to your number plate.
If the government really wants to plug its revenue gap without short-circuiting the EV revolution, it needs to work with the industry — not against it. Create a clear, fair, and future-proof system that doesn’t punish early adopters for doing the right thing.
Because right now, the message from Westminster seems to be: “Thanks for going green. That’ll be £435, please.”
Source: SMMT

