Overview
- Transport Secretary Heidi Alexander said EV and hybrid drivers should contribute to road upkeep, reiterating rates of 3p per mile for battery‑electric cars and 1.5p for plug‑in hybrids from April 2028.
- Treasury documents describe an eVED system where owners forecast annual mileage, pay upfront or in instalments, and reconcile against actual miles at year end.
- Annual mileage checks will occur at MOT; new cars will have verification around their first and second registration anniversaries, and overseas miles by UK‑registered vehicles will count.
- Ministers have rejected charging by time or location to protect privacy, with a typical EV driver expected to pay about £240 a year under Treasury estimates.
- Polling reported by Auto Express shows drivers divided on fairness, while industry voices warn of a shift toward mild hybrids and the OBR projects 120,000 fewer vehicle sales by 2030; analysts also point to sharp EV market drops after similar taxes in New Zealand and Iceland.