Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what steps he plans to take to make up the £58bn reduction in Vehicle Emissions Duty and fuel duty by 2035 arising from increasing uptake of electric vehicles, while maintaining strong incentives for drivers to switch to electric vehicles.

As more people switch to electric vehicles, fuel duty receipts are forecast to decline. The Government is therefore introducing Electric Vehicle Excise Duty (eVED) from April 2028, to ensure electric vehicle drivers make a fair contribution to the public finances while maintaining incentives to switch to electric vehicles.

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 1.5 pence per mile.

The Government also announced additional support at Budget 2025, meaning we are investing over £7.5 billion out to 2035 to help drivers and the automotive sector make the switch to electric vehicles. This includes £2 billion for the Electric Car Grant (ECG), further support for chargepoint rollout, and increasing the Expensive Car Supplement (ECS) threshold to £50,000 for EVs. This support is being introduced before the tax takes effect to support continued momentum in EV take-up. Overall around 80 per cent of eVED revenue from the first three years of the tax will be reinvested to extend support for EVs and the automotive manufacturing industry.