Labour's new pay-per-mile tax for electric vehicles has sparked fierce backlash over complexity concerns and a controversial "double charge" for drivers who travel abroad. The scheme, set to begin in April 2028, will levy 3p per mile on fully electric cars and 1.5p on plug-in hybrids.
Electric vehicle owners will face mandatory annual mileage checks at MOT centers during their car's first two years. The system requires drivers to estimate and pre-purchase their annual miles when taxing their vehicle, with a year-end payment adjusted to actual mileage driven. Underestimates will require a top-up payment.
The Government ruled out charging based on when or where people drive to "protect motorists' privacy." This decision means miles driven abroad will be subject to the levy, triggering warnings of unfair double taxation.
The overseas driving problem
AA president Edmund King expressed concerns about the practicality of overseas charging. «It would be pretty bureaucratic to have to check your mileage at Dover and have it stamped on some kind of certificate to say you're leaving the country for two weeks», he said.
King warned of a «nightmare» scenario. «There are already concerns about the extra checks at the borders, so I think it would be a nightmare. It seems EV drivers would have to pay double taxation.»
A round-trip from Calais to Nice in France would cost drivers an additional £45.90 under the scheme, on top of any foreign road charges.
Cost estimates and economic impact
MoneySuperMarket estimates the average annual charge for fully electric cars at £243, based on typical mileage of 8,116 miles. A driver covering 10,000 miles annually would pay £300.
Personal finance expert Kara Gammell from MoneySuperMarket noted: «Currently, drivers of petrol or diesel vehicles pay around £600 a year in fuel duty, whereas our analysis suggests the predicted average annual charge for EVs will be about £243 – less than half the current cost for traditional fuel vehicles.»
The Office for Budget Responsibility projects a staggering 120,000 fewer electric vehicles will be sold due to the new measures.
Industry and political backlash
Shadow transport secretary Richard Holden characterized the scheme as deeply flawed. «On top of raising fuel duty by 5p per litre, Rachel Reeves is ramming through a half-baked extra driving tax that's riddled with holes», he said.
Holden accused Labour of breaking promises: «Labour promised no pay-per-mile tax, then slipped one out to kick in from 2028 and hoped nobody would notice. It's rushed, it's sloppy and it's nothing more than a raid on working people to pay for their welfare bonanza.»
Tanya Sinclair, chief executive of Electric Vehicles UK, warned the proposal «simply isn't ready». She stated: «Too many practical questions remain unanswered, from how drivers will use it day-to-day to how the government plans to deliver such a major shift in motor taxation. Until those details are clear, the system risks feeling chaotic and drivers are left in the dark.»
Implementation concerns
Tax expert Dan Neidle raised concerns about used car purchases, warning that buyers could be liable for previous owners' undeclared mileage. «This doesn't feel great to me», he said, suggesting it «would be better to let owners or dealers make a 'catch-up' payment at the point of sale so buyers are getting a vehicle excise duty-'clean' car.»
The Treasury's consultation acknowledges that mileage readings based on in-vehicle odometers could be tampered with. Around 2.3 per cent of cars in the UK already show signs of clocking. Motorists who under-declare mileage risk facing an «increased rate in future years», according to the consultation document.
Chancellor Rachel Reeves defended the plans, stating: «everyone can check the mileage on their car, it's not a difficult thing to do.»
The Treasury confirmed no motorist charge for the mandatory mileage check service, though officials could not disclose how many accredited garages would offer the service or potential travel distances for owners.
Note: This article was created with Artificial Intelligence (AI).
