Proposals have been revealed illustrating how Rachel Reeves’ pay-per-mile road tax scheme for EVs could be implemented, with electric car drivers set to pay an average of £200-300 per year in ‘eVED’ (Electric Vehicle Excise Duty) on top of the annual cost of VED following the Budget.
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 stands at £195 per year.
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