Large group of drivers will have to pay 3p per mile with date set

Drivers of battery electric cars will be hit by a 3p per mile tax from April 2028, with the charge to rise annually with inflation, according to the Office for Budget Responsibility. The confirmation came before Chancellor Rachel Reeves delivered her Budget speech to the House of Commons in a forecast that was published early in a blunder.

Confirming the measure during her Budget speech, the Chancellor also said hybrid vehicles would be taxed at 1.5p per mile. The Treasury faces a reduction in revenue from fuel duty as more drivers move from petrol or diesel cars to EVs. The Chancellor said that this would go towards helping road maintenance.

That price will increase annually with the Consumer Price Index. At present, the

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