Charnjit Saranna, the founder of the electric car leasing firm EZOO, expressed concerns regarding a newly announced road charge for electric vehicle (EV) owners. Starting in April 2028, drivers of electric cars will be subject to a charge of 3 pence per mile, while plug-in hybrid drivers will pay 1.5 pence per mile, with rates increasing each year in line with inflation. This measure was confirmed in the recent Budget, amidst the government’s plan to phase out the sale of new petrol and diesel cars by 2030, aiming to mitigate climate change impacts.
Saranna remarked that this new tax could potentially make EVs less attractive to consumers. Speaking at a gathering of the Coventry and Warwickshire Chamber of Commerce, she noted the ongoing efforts stakeholders have been making to transition from traditional petrol and diesel vehicles to electric ones. She expressed worry that the road charge might hinder this momentum toward the 2030 target.
The Office for Budget Responsibility (OBR), the government’s independent forecaster, indicated that the new charge might reduce demand for electric vehicles due to increased lifetime costs. For instance, an electric car driver covering 8,500 miles in the 2028-29 financial year is projected to incur about £255 in road charges—still significantly lower than what conventional fuel drivers pay in fuel tax.
Despite her concerns, Saranna remains optimistic that electric vehicles will continue to provide better overall value for consumers. She believes that the advantages of driving electric will outweigh the new charges in the long term. The effectiveness of this approach in encouraging the transition to electric vehicles remains to be seen as the industry and policymakers navigate these changes.
Source: https://www.bbc.com/news/articles/czj0deyyx8jo?at_medium=RSS&at_campaign=rss