At the final Treasury Questions session in the House of Commons before Christmas, Richard asked the minister for the results of his assessment of the impact of the Budget’s introduction of road pricing on rural areas compared with urban areas for EV (electric vehicle) drivers.
Shadow Chief Secretary to the Treasury, Richard Fuller MP, said:
The budget brought in a new form of taxation: road pricing – or as the government likes to call it a “pay per mile” tax.
In North Bedfordshire - let alone in places like Scotland, Yorkshire or the West country – rural residents already face higher costs for regular trips like getting the kids to school, visiting the doctor or doing the weekly shop and I wanted to ask the Chief Secretary if he could confirm that the new tax will not unduly fall on rural drivers.
The exchange can be watched at https://youtu.be/Cxw6kilEbno?si=OSXUkLuqhctgzdvn
At the Autumn Budget 2025, the Chancellor announced a new pay-per-mile road tax (eVED) for electric vehicle drivers of 3p per mile, with plug-in hybrid vehicle drivers paying 1.5p per mile. This means that the average EV owner will pay an extra £240 per year alongside the existing VED rates. There remains a lack of clarity from the Government about exactly how the system will operate. The Government has said it will not require cars to have trackers installed and that drivers will have their milage checked at around the first the second registration anniversary of their car, however, it is not clear how the checks will be performed or who will administer them.
The Government plans to ban the sale of new petrol and diesel cars in 2030, which will leave many people looking to buy a new vehicle with little option but to pay this tax. The Conservative Party believes the transition to electric vehicles needs to be pragmatic and focused on the needs of the public, rather than driven by an arbitrary timeline.
The Treasury is currently consulting on the detail of this new tax. To share your concerns about this policy and its consequences please go to: https://www.gov.uk/government/consultations/consultation-on-the-introduction-of-electric-vehicle-excise-duty-eved
