"A new per-mile tax on electric vehicles could deter nearly half of prospective buyers from switching to an EV, according to new research from AutoTrader, raising concerns that government policy on electric car adoption is becoming increasingly contradictory. From 2028, drivers of electric vehicles will face a new charge of 3p per mile travelled, a move announced by Chancellor Rachel Reeves. AutoTrader's chief executive, Nathan Coe, said the decision risked undermining years of efforts to encourage drivers to move away from petrol and diesel."
"Coe described the policy as "incoherent and inconsistent" with the government's stated ambition to accelerate the transition to electric vehicles, warning that it could slow momentum at a critical stage. AutoTrader's latest report, No Driver Left Behind, found that while 62 per cent of motorists are currently considering an electric car as their next vehicle, that figure falls sharply once cost and income are taken into account."
Drivers of electric vehicles will face a new charge of 3p per mile from 2028. The new per-mile tax could deter nearly half of prospective buyers from switching to EVs. Currently 62 per cent of motorists are considering an electric car as their next vehicle, but interest falls with lower incomes: 48 per cent among households earning under £40,000 versus 73 per cent among higher earners. Electric vehicles remain about 17 per cent more expensive than petrol equivalents, making purchase price the primary barrier to adoption. Younger and urban drivers show higher openness than older and rural drivers. Concerns include range, charging reliability, and running costs.
Read at Business Matters
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