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Drivers of certain cars will be hit by a new tax, announced by Rachel Reeves at the Budget.

Following weeks of speculation, a new pay-per-mile motoring tax was confirmed by the Chancellor.

This will impact owners of electric vehicles (EVs) and plug-in hybrids.

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EV drivers will face a 3p-per-mile charge while the rate will be 1.5p for those who have hybrids.

The measure is in response to falling fuel duty revenue as more Brits switch to electric cars by the year.

This will be introduced in April 2028.

The 3p rate means someone doing 10,000 miles a year would have to pay £300.

It has

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