View 2 Images

The government has issued a statement in response to speculation that a new 'pay per mile' tax on some drivers will be announced in the Autumn Budget.

The Daily Telegraph has reported that chancellor Rachel Reeves is set to introduce a 3p per mile tax on drivers of electric vehicles (EV), which could cost the average EV driver £250 a year.

The publication said the scheme is set to be implemented in 2028 following a government consultation.

With more drivers turning from petrol and diesel cars to EVs, the government is bringing in less revenue from fuel duty. But motoring experts have said targeting EV drivers with a new tax, while encouraging drivers to make the switch to electric, could be seen as 'mixed messaging' from the government.

The Daily Telegraph said the

See Full Page