Chancellor Rachel Reeves is expected to announce a new tax for electric vehicle (EV) drivers in the upcoming Budget on 26 November. Currently, while petrol and diesel vehicle owners pay fuel duty, there is no equivalent charge for EVs. A government spokesperson noted the intention to create a fairer system for all drivers, especially as all new cars must be electric or hybrid by 2030 to comply with forthcoming regulations.
This shift is part of the UK’s strategy to achieve “net zero” emissions by 2050. Domestic transport was responsible for over a quarter of the UK’s emissions in 2023, marking it as the largest emitting sector. The sale of new petrol and diesel cars will be banned from 2030, with hybrids allowed until 2035. In comparison, the European Union has set its ban for 2035.
Currently, EVs are subject to Vehicle Excise Duty starting from 1 April 2025, with fees depending on the vehicle’s price and age. A potential “pay-per-mile” tax, which could charge EV drivers an additional fee per mile driven, is under consideration, although details on enforcement remain unclear. Concerns have been raised that such taxes could deter people from transitioning to electric vehicles.
EV sales in the UK are showing growth, with figures from the Society of Motor Manufacturers and Traders (SMMT) indicating that 36,800 fully electric cars were registered in October 2025. The goal is to increase this to 80% of new registrations by 2030. Nevertheless, conventional engines will still be on the roads post-2035.
Operating costs for EVs can vary based on charging location—home charging is often more economical than public charging. There are now approximately 87,000 public charging points across the UK, but accessibility outside major urban areas remains a concern. The government is expected to achieve a minimum of 300,000 charging points by 2030, although a report highlighted unequal distribution and potential impacts on drivers needing special accommodations.
Source: https://www.bbc.com/news/articles/clykywlw2eko?at_medium=RSS&at_campaign=rss