Millions of electric vehicle drivers face a new tax that could cost more than £250 a year, after Chancellor Rachel Reeves announced the new policy in the Autumn Budget.

The new pay-per-mile tax will be introduced in 2028 and see EV motorists pay an extra 3p every mile, in a measure expected to raise £1.4billion in taxes.

Reeves said the move is part of plans to ‘reform our motoring taxes.’

She added: ‘Because all cars contribute to wear and tear on our roads, I will ensure that drivers are taxed according to how much they drive and not just the type of car they own by introducing electric vehicle excise duty on electric cars.’

She said it would help ‘double road maintenance funding in England over the course of this Parliament.’

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