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A “fairer” tax system for drivers is needed, the Government said, amid speculation an electric vehicle (EV) pay-per-mile scheme will be announced in the Budget .

Chancellor Rachel Reeves will unveil a policy to introduce a 3p per mile tax for EVs when she delivers her November 26 Budget, the Daily Telegraph reported.

The scheme is set to be implemented in 2028 following a consultation, and would cost EV drivers an average of £250 per year, according to the newspaper.

Motoring groups expressed concern that such a tax could put some people off from switching to

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