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Electric cars - Reeves to hit drivers with pay-per-mile tax

232 replies

PuppyPadsAreHereAgain · 06/11/2025 10:27

Todays telegraph. Can imagine there will be howls of protest to this one.

Rachel Reeves to hit drivers with pay-per-mile tax in Budget

Reeves to hit drivers with pay-per-mile tax

Electric vehicles face new levy as Chancellor scrambles to make up for falling fuel duty revenue

https://www.telegraph.co.uk/politics/2025/11/05/reeves-to-hit-drivers-with-pay-per-mile-tax-in-budget/

OP posts:
AlaskaThunderfuckHiiiiiiiii · 06/11/2025 11:51

as someone else pointed out it’ll start with EV then filter to everyone if this the track they’re going down. Going to be a nightmare for those of us who need a car to do our jobs, I’m a community nurse covering a large rural area, many of my colleagues in home caring also cover this area. I’ve just switched to a mild hybrid and had thought about a full EV but no driveway or any way of home charging unfortunately but I’d definitely be put off now

SailingAwayAgain · 06/11/2025 11:51

PuppyPadsAreHereAgain · 06/11/2025 10:46

Thanks for posting another article on it.

I just feel like like these types of taxes are very sneaky. They encourage people to buy electric cars and then once lots have they hit them with something like this that they can't avoid.

A bit like the mansion tax idea. They hit people with it after people have committed to buying/living in their house.

Much harder to get out of things once you have bought them than to know about it before hand and take it into account during your decision making.

But how is it different from the tax on petrol and diesel that drivers of non-electric cars have to pay every time they fill up the tank? That tax is a bit like a per-mile tax, as the more fuel you use, the more tax you pay.

If, as is the intention, all petrol and diesel vehicles are phased out in favour of electric ones, how else would the government make up for the deficit in tax receipts when nobody is buying petrol or diesel any more?

HelplessSoul · 06/11/2025 11:53

PuppyPadsAreHereAgain · 06/11/2025 10:51

What do mean a pathway to penalise all drivers? Do you think she is going to bring in a pay per mile tax for all cars eventually (ie including petrol/diesel cars).

That will create quite a bill for those with a long commute and probably have a very negative impact on the car sales in this country. I guess railways might be rubbing their hands in glee though if they think lots of people will have to switch from cars to trains.

I put nothing past this corrupt Govt and its fuckwit lying "Chance"llor.

Labour since the 1980s have vied for taxing motorists with pay per mile wet dreams.

Reeves is now carrying it out - and if it comes to pass, ALL drivers will be hit with pay per mile charges.

Interested in this thread?

Then you might like threads about this subject:

Thisiswhathings · 06/11/2025 11:55

HelplessSoul · 06/11/2025 11:53

I put nothing past this corrupt Govt and its fuckwit lying "Chance"llor.

Labour since the 1980s have vied for taxing motorists with pay per mile wet dreams.

Reeves is now carrying it out - and if it comes to pass, ALL drivers will be hit with pay per mile charges.

Why shouldn't we pay per mile. Petrol and diesel already has a duty , the more miles you do the more you pay. In what way is it corrupt?

JassyRadlett · 06/11/2025 12:09

Hoppinggreen · 06/11/2025 11:46

I pay Road Tax on my EV already and I pay to charge either via my electric bill at home or at a charge point
Now I am going to get charged per mile as well?
I run my car through my business so I have no idea how it will all work

Road tax is also charged on ICE so no differential for EV owners.

If (as floated) Reeves removes the 5% VAT from electricity bills, then the differential between EV consumption taxation rate and ICE consumption taxation rate (more than a third of the cost of petrol is tax) gets even wider.

Cinnamon77 · 06/11/2025 12:24

Apparently it's going to be more expensive to run an EV car than a petrol car in the UK after the Budget.

It's hard to believe any Chancellor can be this incompetent

HelplessSoul · 06/11/2025 12:25

Thisiswhathings · 06/11/2025 11:55

Why shouldn't we pay per mile. Petrol and diesel already has a duty , the more miles you do the more you pay. In what way is it corrupt?

As a petrol driver, why the fuck should I or anyone for that matter, have to pay to drive per mile when we are already taxed on vehicle purchase, VED AND fuel?

Where the fuck is that money going?

Certainly not on the bastard potholed roads of this failing nation, thats for sure.

You wanna pay per mile - good for you. A great many people will disagree with you on that.

ShesTheAlbatross · 06/11/2025 12:33

LlamaNoDrama · 06/11/2025 10:51

I'd be so pissed off if I bought an EV then they taxed by the mile. Wasn't half the pushing point a 'look no tax' if you own one'? Normal car tax would be fair since they also contribute to road wear and tear. I can't see how taxing some of the country per mile but not the rest is fair. I'd also be livid if they taxed us all per mile when half the country has shit public transport!

I think if someone bought one believing they wouldn’t be taxed then they didn’t really think it through. Obviously as more electric cars replace others, tax from those will fall and will have to be made up somewhere. They were never going to be some wonderful tax free option

ShesTheAlbatross · 06/11/2025 12:40

HavfrueDenizKisi · 06/11/2025 11:17

Yes this is as it should be. EV’s are heavy and damage the roads to a greater extent than ICE cars. As pp mentioned ICE car drivers essentially pay a per mile tax as the more fuel they buy the greater the tax they pay. It’s ridiculous that EV’s had no or low car tax anyway (finally ended this April) how will any government find money to keep roads in good repair etc?

I do have to wonder how many EV drivers upset by this proposal were quite happy when other taxes were raised that didn’t affect them (eg VAT on school fees - some people were vitriolic on here to private school parents about that).

I have no issue with this tax but I don’t think it’s hypocritical to be annoyed at this tax but fine with the VAT on private schools. They are completely different issues. It’s not reasonable to say that because someone is fine with VAT on private schools, or fine with this electric car tax, they are not allowed to disagree with some other potential future tax on a completely different thing.

You’re fine with this tax - if next week a tax is introduced that you don’t like, it wouldn’t be reasonable for someone to say “oh but you were fine with the EV tax!!”

Chiseltip · 06/11/2025 12:48

And just like that, they have killed the EV market.

Well done!

Nobody is going to want one now.

Also, who is going to check the data?

How will the system be run?

What will it cost?

What protections are in place?

HavfrueDenizKisi · 06/11/2025 12:54

@ShesTheAlbatrossbut people are always unhappy with taxes that directly affect them and fine with the ones they perceive other ‘richer’ people have to pay. I mean if you can afford an electric vehicle (they’re not cheap) you should be able to pay this tax.
I’ve currently no skin in the game here as our car was bloody well nicked off our drive a week ago so I’m carless 😩.
However unfortunately the tax take needs to increase to pay for things we all want - schools, NHS etc. the actual reality is, I think, the basic rate of tax will have to increase. Tinkering around the sides isn’t going to help.

Should this come in I still think it will be several years off and I think pp are right that it will eventually lead to all cars paying per mile.

For the record though I think Reeves is incompetent and a liar.

lostintranslation148 · 06/11/2025 13:23

I think it makes sense as petrol and diesel cars pay duty on fuel where EV's don't. But it's going to put people off buying electric.

I would rather have my petrol car anyway, we don't have parking and so would have to charge at charging points. Which is going to be awkward, take time and cost more.

Hopefully no one will buy electric cars and the ban on selling petrol cars will be delayed. Trying to save the planet by forcing people to have expensive EV cars in the UK is pointless anyway when China are building coal power plants at a rate of knots.

lalalapland · 06/11/2025 13:27

JassyRadlett · 06/11/2025 12:09

Road tax is also charged on ICE so no differential for EV owners.

If (as floated) Reeves removes the 5% VAT from electricity bills, then the differential between EV consumption taxation rate and ICE consumption taxation rate (more than a third of the cost of petrol is tax) gets even wider.

Lovely. So those of us trying to reduce emissions by having solar and EV end up with reduced VAT on electricity - useless when I use the power of the sun 🫠 And additional tax on my car. It already costs more per mile to charge an EV at a station than it does to fill an ICE car

AmIHumanOrAmIAYeti · 06/11/2025 13:27

MeouwKing · 06/11/2025 11:35

Cycling is tax-free, good for the environment and good for your health, so long as you don't get hit by an SUV

My commute is 200 miles.

lalalapland · 06/11/2025 13:30

HavfrueDenizKisi · 06/11/2025 12:54

@ShesTheAlbatrossbut people are always unhappy with taxes that directly affect them and fine with the ones they perceive other ‘richer’ people have to pay. I mean if you can afford an electric vehicle (they’re not cheap) you should be able to pay this tax.
I’ve currently no skin in the game here as our car was bloody well nicked off our drive a week ago so I’m carless 😩.
However unfortunately the tax take needs to increase to pay for things we all want - schools, NHS etc. the actual reality is, I think, the basic rate of tax will have to increase. Tinkering around the sides isn’t going to help.

Should this come in I still think it will be several years off and I think pp are right that it will eventually lead to all cars paying per mile.

For the record though I think Reeves is incompetent and a liar.

I disagree that taxes need to increase, with no evidence of efficiency improvements in any publicly funded service. Let's just keep giving them more money to waste 👏

Thisiswhathings · 06/11/2025 13:30

HelplessSoul · 06/11/2025 12:25

As a petrol driver, why the fuck should I or anyone for that matter, have to pay to drive per mile when we are already taxed on vehicle purchase, VED AND fuel?

Where the fuck is that money going?

Certainly not on the bastard potholed roads of this failing nation, thats for sure.

You wanna pay per mile - good for you. A great many people will disagree with you on that.

Well you fucking won't I assume, you will either pay per mile or pay by the fuel you use , not both.
The money goes towards a country with a increasingly older population and one that has younger people having less children. It's something we will have to get used to , unless there is an answer to the demographic problem that as yet no body has solved .

Ilikewinter · 06/11/2025 13:40

My DH has an EV and has declared he's selling it and going back to petrol if she brings this in - even though there is tax on fuel it's just another thing that's pissed him off!.

I'm wondering how they will implement this, I've read suggestions on MOT mileage, but that won't work for new cars, or suggestions of requiring a black box - and what happens if you go drive abroad, how do you discount that mileage??

TheFairyCaravan · 06/11/2025 13:42

It says “could” not will.

I’ve got an EV and this would not bother me at all. We’ve had it a year, done just over 8000 miles and the charging has cost me £160. If I have to add on £240 as a pay per mile, it’s still a huge saving on my previous diesel car.

luckylavender · 06/11/2025 13:45

PuppyPadsAreHereAgain · 06/11/2025 10:32

Yes I know. I can't read it properly either and the guardian doesn't seem to be reporting it.

Just was a bit shocked that she is going to tax electric drivers per mile. It seems no where is safe. You can't even leave the country without being taxed now that they are considering (or is it definately happening?) an exit tax on leaving the UK.

Nothing is definitely happening. It’s all rumour, speculation & testing the water

menopausalmare · 06/11/2025 13:47

Electric cars are massive and heavy. Their tax should contribute to road repairs.

Clearinguptheclutter · 06/11/2025 13:50

Long term EV owner here
while I don’t like it it was inevitable that eventually we’d be subject to a separate tax

I’ll reserve judgement until I know how much I need to pay

smallglassbottle · 06/11/2025 13:58

Of course it'll be extended to non electric cars. It'll prove a useful way of getting people out of them and on to electric.

jasflowers · 06/11/2025 14:02

PuppyPadsAreHereAgain · 06/11/2025 10:32

Yes I know. I can't read it properly either and the guardian doesn't seem to be reporting it.

Just was a bit shocked that she is going to tax electric drivers per mile. It seems no where is safe. You can't even leave the country without being taxed now that they are considering (or is it definately happening?) an exit tax on leaving the UK.

ICE drivers pay fuel duty, i assume thats ok with you?

Why should EV drivers not pay taxes that every other car driver pays?

Esp considering they "can" be far heavier and cause more damage to roads, big SUV style cars drink more fuel, pay more tax.

Seems a very sensible policy to me.

caringcarer · 06/11/2025 14:04

LlamaNoDrama · 06/11/2025 10:51

I'd be so pissed off if I bought an EV then they taxed by the mile. Wasn't half the pushing point a 'look no tax' if you own one'? Normal car tax would be fair since they also contribute to road wear and tear. I can't see how taxing some of the country per mile but not the rest is fair. I'd also be livid if they taxed us all per mile when half the country has shit public transport!

I am very pissed off. I just st ordered an electric car for collection in January now hear she's going to tax that too. Dreadful government who lied to the electorate and will be voted out at next election hopefully for a generation.

LizzieSiddal · 06/11/2025 14:09

Anyone with any sense would realise this was going to happen. losing all that yearly car tax revenue, wasn’t going to be sustainable forever.

And we bought an EV car in March and am very happy to pay per mile.