Question to the HM Treasury:

To ask the Chancellor of the Exchequer, whether he has made an assessment of the potential merits of introducing a new tax on electric vehicles based on mileage travelled.

As announced at Budget 2025, the Government will introduce Electric Vehicle Excise Duty (eVED), a new mileage charge for electric and plug-in hybrid cars, from April 2028. This will help address the decline in fuel duty receipts as more people switch to electric vehicles.

From April 2028, electric cars will pay 3 pence per mile, around half the equivalent fuel duty rate paid by the average petrol or diesel driver, while plug-in hybrid cars will pay a reduced rate of 1.5 pence per mile. Drivers will pay eVED alongside their existing Vehicle Excise Duty.