Will pay-per-mile raise Reeves money or drive people away from electric vehicles?
Briefly

Will pay-per-mile raise Reeves money or drive people away from electric vehicles?
"Chancellors of the exchequer have long resisted any form of road pricing as politically toxic. That may be about to change next week: Rachel Reeves, perhaps inured to being pilloried for any money-raising proposal, is expected to introduce a charge explicitly linked to how far EVs drive. The Treasury has all but confirmed some kind of charge will be announced at next week's budget,"
"The Treasury has all but confirmed that some kind of charge will be announced at next week's budget, but the details have not been revealed. According to an initial report in the Telegraph, EV drivers could from 2028 pay a supplement based on how far they had driven that year on top of their annual road tax, or vehicle excise duty (VED)."
"According to Department for Transport (DfT) figures, battery electric cars with lower running costs than petrol are used more: clocking up about 8,900 miles on average in 2024. At 3p a mile, that would bring in 267 a car from the 1.4m EVs currently on the road about 375m a year in total. The transport secretary, Heidi Alexander, was at pains to rule out a national road pricing scheme in the face of Commons attacks on Thursday"
A per-mile charge on electric vehicles is expected to be announced at the next UK budget, linked explicitly to distance driven and added to vehicle excise duty. Initial proposals suggest EV drivers could report annual mileage or have odometers checked, with a possible 3p-per-mile supplement introduced from 2028. Department for Transport figures show battery electric cars average about 8,900 miles annually, implying roughly £267 per EV and around £375m a year from 1.4m EVs at 3p per mile. The measure responds to a long-term shortfall in fuel duty revenue as petrol and diesel consumption falls.
Read at www.theguardian.com
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