A new pay-per-mile tax on electric vehicles (EVs) will cost the average driver an additional £255 per year.

Rachel Reeves has imposed a new tax on EVs, which will come into force in 2028, as part of her autumn Budget.

Green groups and manufacturers have raised concerns that the new tax will put people off switching to EVs, and criticised the Government for “chopping and changing” its green policies. New Feature

In Short

Quick Stories. Same trusted journalism.

What is the new tax on EVs?

From April 2028 EV drivers will be hit with a new pay-per-mile tax, similar to the fuel duty tax paid by petrol car owners.

In 2028/29 this charge will equal 3p per mile for battery electric cars and 1.5p per mile for plug-in hybrid cars. The tax will increase annually in line with inflation.

The c

See Full Page