EV drivers could get a cheaper car thanks to the new announcement - but they may have to pay more to drive it

Rachel Reeves will add £1.3 billion to a grant cutting upfront costs for buyers of electric cars in Wednesday’s Budget - just as she is expected to hit them with a pay-per-mile scheme. The Chancellor will boost the subsidy that knocks up to £3,750 off the price of an electric vehicle (EV) as part of a package that will also see £200 million go towards the rollout of charging points.

The grant allows buyers of eligible EVs to get an automatic discount. The Government believes this will help hundreds of thousands of motorists to switch to EVs over the next few years.

But it comes amid reports that Ms Reeves could also unveil an EV pay-per-mile scheme in her crunch Budget. The Tele

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