Report warns nearly half of all car buyers put off by newly proposed 'per-mile' tax: 'Incoherent and inconsistent'

British motorists are facing a significant barrier to switching to electric vehicles, according to The Times. 

What's happening?

A recent survey by Autotrader showed that the U.K.'s move to charge EV drivers a per-mile tax has had a cooling effect on adoption. 

Nearly half of respondents said they were less likely to make their next car an EV due to the new fee, which comes into effect in April 2028. It would add roughly an additional $325 to owners' expenses each year. 

The move runs counter to the British government's stated goal of accelerating EV adoption, leading Autotrader CEO Nathan Coe to call the new tax "incoherent and inconsistent," per The Times.

Part of the issue is that the U.K.'s EV transition has been so successful. Government revenue from taxes on gas sales has dropped; this EV levy could make up 25% of the shortfall.  

"All cars contribute to the wear and tear on our roads," Chancellor of the Exchequer Rachel Reeves said during the 2025 budget announcement. "I will ensure that drivers are taxed according to how much they drive and not just by the type of car they own by introducing the EV Excise Duty on electric cars." 

Why is EV adoption important?

Electric vehicles are cheaper to run than gas cars, making the switch a major cost-of-living improvement. 

On top of that, they release no tailpipe pollution. That means better local air quality and less pollution going into the atmosphere to exacerbate destructive weather patterns. 

What's being done about EV adoption in the U.K.?

"We need more carrot and less stick if we're serious about the electric transition," said Ian Plummer, Autotrader's Chief Customer Officer. "The Chancellor clearly needs to raise revenue, but if she wants to encourage EV adoption, she should think extremely carefully before introducing pay-per-mile charging for EVs. 

"Drivers respond to incentives, and anything that puts up running costs for electric vehicles will slow that momentum. We've already seen changes to Vehicle Excise Duty this year, making the cost of driving new EVs more expensive."

Luckily, public consultations on the fees remain open until March.

Should governments be allowed to tax their citizens for driving an EV? Yes 👍 No 👎 Only in certain areas 🗺️ I'm not sure 🤔 Click your choice to see results and speak your mind.

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