UK to add £1.3bn for EVs but warns of 'fair' tax for all drivers

upday.com 1 godzina temu
The government warns EV drivers about potential pay-per-mile charges as Chancellor Rachel Reeves prepares £1.3 billion purchase grant (Symbolic image - AI generated) Upday Stock Images

The UK government has warned electric vehicle drivers that a "fair" tax system for all motorists is necessary, as Transport Secretary Heidi Alexander addressed speculation about potential pay-per-mile charges on BBC's "Sunday with Laura Kuenssberg" show. The discussion comes ahead of Wednesday's Budget, where Chancellor Rachel Reeves will add £1.3 billion to a grant aimed at reducing the upfront cost of electric cars by up to £3,750.

Alexander emphasized the government's balancing act between supporting the EV transition and maintaining road infrastructure. On the BBC show, she said: «As we make the transition to EVs, two things can be true at the same time. We need a fair vehicle tax system for all motorists because EVs, like drivers of petrol and diesel cars, are driving on roads that require maintenance. We have got ageing infrastructure, motorways that were built in the 1960s and 1970s, so we need to have a fair taxation system that is future-focused, but we are not going to do anything to jeopardise the transition to EVs and that will remain front and centre.»

The Transport Secretary declined to confirm specific details about the upcoming Budget. «I am not going to pre-empt the Budget. The Chancellor will be on your show next week,» she told presenter Laura Kuenssberg.

Why Now

The government faces a growing revenue gap as more drivers switch from petrol and diesel vehicles to EVs. Traditional fuel duty income is plummeting, while the UK's aging motorway network from the 1960s and 1970s requires ongoing maintenance funding.

Overseas Charges Spark Criticism

Reports from the Telegraph earlier this month suggested EV drivers could face pay-per-mile charges even when driving overseas. This sparked criticism from motoring experts. Paul Barker from Auto Express magazine said: «It wouldn't be reasonable to charge drivers for mileage clocked up abroad when they're not using UK roads or infrastructure, so getting the balance right will be vital to any sort of acceptance by motorists.»

The Treasury responded to the criticism, stating: «Just as it is right to seek a tax system that fairly funds roads, infrastructure and public services, we will look at further support measures to make owning electric vehicles more convenient and more affordable.»

Note: This article was created with Artificial Intelligence (AI).

Idź do oryginalnego materiału