Question to the HM Treasury:

To ask the Chancellor of the Exchequer, with reference to her Department's document entitled Consultation on the Introduction of Electric Vehicle Excise Duty (eVED), updated on 25 March 2026, whether she will make an assessment of the potential impact of the proposal for different rates of electric Vehicle Excise Duty on electric cars and plug-in hybrid cars on the level of demand for electric vehicles for the first five years following the commencement of the policy.

The Government remains firmly committed to the Electric Vehicle (EV) transition, and has carefully considered the potential impact of electric Vehicle Excise Duty (eVED) on consumer uptake of electric vehicles.

The rate of eVED for EVs will be half of the equivalent fuel duty rate paid by the average petrol/diesel driver, ensuring that EVs are cheaper to own and run for the majority of EV drivers. Alongside eVED, the Government also announced at Budget 2025 generous additional support to incentivise the use of electric vehicles, including £1.3 billion of additional funding for the Electric Car Grant (ECG), £200 million for chargepoint rollout, and increasing the VED Expensive Car Supplement (ECS) threshold to £50,000 for EVs.

The Government has set out the expected impacts of eVED and related Budget measures in the Budget 2025 Policy Costings document at GOV.UK.

The Government published a consultation which provides further detail on how eVED will work and sought views on its implementation, available at GOV.UK: https://www.gov.uk/government/consultations/consultation-on-the-introduction-of-electric-vehicle-excise-duty-eved. The consultation closed on 18 March 2026 and the Government will respond to the consultation in due course.