The UK’s fleet and automotive sectors have warned that the Government’s planned 3p-per-mile tax on electric vehicles could undermine the transition to zero-emission transport.
Expected to be announced in the Autumn Budget, the so-called “VED+” tax would apply from April 2028, following consultation later this year. Treasury officials argue the measure will restore fairness between EV and petrol or diesel drivers.
The Society of Motor Manufacturers and Traders (SMMT) said: “At such a pivotal moment in the UK’s EV transition, this would be entirely the wrong measure at the wrong time… deterring consumers and undermining industry’s ability to meet ZEV mandate targets.”
Europcar’s Tom Middleditch warned the tax “will create doubt in people’s minds and be another deterrent to adoption,” while Novuna’s Jon Lawes said it risks “sending the wrong signal at a critical time for the UK’s net-zero transition.”
Autotrader’s Ian Plummer urged “more carrot and less stick,” and Allstar’s Paul Holland said the move “risks derailing the very progress the UK needs to hit its climate and transport goals.”
If introduced, fleets covering 20,000 miles annually could face an added £600 in running costs per vehicle.
Read the Government’s EV tax proposals and consultation timeline here.