2025 Budget confirms new 3p per mile tax for electric and plug-in hybrid cars

Contributing sentiments towards policy:

58% : Early examples when reports of the mileage tax were first circulating suggested a journey from London to Edinburgh could cost around £12, while shorter trips, such as Liverpool to Leeds, might cost £2. Sign up for our daily newsletter - breaking headlines and leading news sent to your inbox.
55% : It is expected that drivers will estimate their annual mileage when registering their vehicle and pay the tax upfront.
54% : The mileage tax aims to restore the link between road use and taxation, effectively asking EV owners to "pay for the road" they use.
54% : The Office for Budget Responsibility (OBR) leaked details of the 2025 Budget ahead of Reeves' Commons announcement, estimating the mileage charge will raise around £1.4 billion a year by 2029-30, with wider tax changes across the motoring sector projected to bring in £11 billion by the same year.
54% : In addition to the mileage tax, the Government will invest £200 million in expanding the network of EV charging points across England.
51% : Initially, the tax will apply only to EVs and plug-in hybrids.
45% : The mileage tax is not expected to come into force until 2028, following public consultation and careful planning.
43% : Supporters say it could reduce congestion and emissions, while critics warn it may hit early adopters unfairly UK drivers are facing a shift in motoring costs after a new mileage-based tax on electric vehicles (EVs) and plug-in hybrids was confirmed as part of the 2025 Budget.

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