Reeves 'to hit EV drivers with pay-per-mile tax' at Budget
The levy will see drivers have to pay an average of £250-a-year
Electric vehicle (EV) drivers will be hit with a new pay-per-mile tax by Rachel Reeves in November's Budget, it has been reported.
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Plans being drawn up by the Chancellor will see EV drivers charged 3p per mile on top of other road taxes, according to the Telegraph.
The scheme will begin in 2028 after a consultation - with the new levy intended to claw back money amid falling fuel tax revenues.
The Treasury is set to frame the changes as a way to even up taxes between drivers of petrol and electric cars.
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Currently, diesel drivers are paying £600 on average more than their EV equivalents.
Around six million people are set to be driving electric vehicles by the time the tax is implemented.
But unlike traditional pay-per-mile schemes, there is said to be no mass monitoring of mileage used to administer the tax.
Sir Mel Stride, the Conservative shadow chancellor, said: “If you own it, Labour will tax it. It would be wrong for Rachel Reeves to target commuters and car owners in this way just to help fill a black hole she has created in the public finances.
“With Labour’s cost of living crisis, now is not the time to hit hard-working families and businesses with another tax raid.”
The move is set to raise £1.8billion by 2031 as the Chancellor seeks to plug a black hole in Britain's finances.
Treasury estimates suggest that by 2040, about £12bn will be lost in tax revenue because less petrol is being used.