Government Announces Pay-Per-Mile Tax But Doesn’t Know How It Will Work

A new tax for electric and hybrid vehicles has been announced by the chancellor in the Budget, but the government doesn’t know how it will work. 

Drivers of electric cars will pay a road charge of 3p per mile, while plug-in hybrid drivers will pay 1.5p per mile from April 2028.

These rates will increase annually, but now average driver £255 per year and raise £1.1bn due to the drop in treasury revenue caused by EVs.

When asked by BBC presenter Charlie Stayt when how the tech will actually work, Labour Chancellor Rachel Reeves said: “Everyone can check the mileage on the car. It’s not a difficult thing to do. We wanted to make it as simple as possible.”

“We need to make time to get this right,” she added.

So the honour system. For now…

Odd, because Transport Secretary Heidi Alexander told the country there was no pay-per-mile system only a few days ago.

Time to buy back your diesel?