EV drivers will soon be subject to a pay-per-mile road tax system, costing them an average of £200-300 per year following an announcement in the Autumn Budget by Chancellor Rachel Reeves.

 

From April 2028, drivers of electric cars ranging from SUVs like the Tesla Model Y, to superminis like the Renault 5 will be subject to a form of road pricing, which will cost three pence per mile driven. 

 

Those driving a plug-in hybrid (PHEV) such as the Toyota Prius will also have to pay, but at a reduced rate of one-and-a-half pence per mile – both this and the EV figure will increase annually in line with the Consumer Price Index. All of this will come on top of Vehicle Excise Duty, which currently standard at £195 per year.