Reports: Chancellor to roll out 'pay-per-mile tax' for EV drivers

Stuart Stone
clock • 5 min read
Chancellor Rachel Reeves delivers a Budget scene setter speech - Credit: Kirsty O'Connor / Treasury
Image:

Chancellor Rachel Reeves delivers a Budget scene setter speech - Credit: Kirsty O'Connor / Treasury

Rachel Reeves preparing 3p-per-mile EV charge to offset decline in fuel duty revenues, as industry warns proposals would slow adoption and prove 'self-defeating'

Chancellor Rachel Reeves is preparing to announce a 3p-per-mile charge for the UK's electric vehicle (EV) drivers at this month's Autumn Budget, in a move designed to offset falling tax revenues from petrol...

To continue reading this article...

Join BusinessGreen

In just a few clicks you can start your free BusinessGreen Lite membership for 12 months, providing you access to:

  • Three complimentary articles per month covering the latest real-time news, analysis, and opinion from Europe’s leading source of information on the Green economy and business
  • Receive important and breaking news stories via our daily news alert
  • Our weekly newsletter with the best of the week’s green business news and analysis

Join now

 

Already a BusinessGreen member?

Login

More on Taxation

Analysts warn energy bills still set to rise, despite VAT cut

Analysts warn energy bills still set to rise, despite VAT cut

Cornwall Insight calculates decision to remove VAT from electricity will save average household £44, but bills are still set to climb two per cent due to rising gas prices

James Murray
clock 21 July 2026 • 4 min read
Burnham announces 'immediate action' to remove VAT from domestic electricity bills

Burnham announces 'immediate action' to remove VAT from domestic electricity bills

Decision will cut energy bills for average household by £45 a year and reduce running costs for heat pumps and electric vehicles

James Murray
clock 21 July 2026 • 5 min read
Study: Food labelling and carbon pricing could cut UK emissions by five per cent

Study: Food labelling and carbon pricing could cut UK emissions by five per cent

New analysis calculates that a tax on the most emissions-intensive foods could slash climate impacts and deliver wider social benefits

James Murray
clock 20 July 2026 • 3 min read