Rachel Reeves’ proposed pay-per-mile tax could push thousands of electric car owners back towards petrol and diesel vehicles, according to a major new survey.
Research from fleet management company Zenith found four in 10 EV drivers would consider ditching their electric cars if the new charge makes driving more expensive.
The findings come from Zenith‘s latest EVXperience Report, based on responses from more than 3,000 electric vehicle drivers across the UK.
Under the proposals being considered by the Government, fully electric cars could be charged 3p per mile from April 2028, on top of existing road taxes, while plug-in hybrids would pay 1.5p per mile alongside fuel duty.
Almost three-quarters of EV drivers surveyed said they are worried about how the new levy could affect their finances. The report also found widespread frustration with Labour‘s wider approach to net zero and electric vehicle policy.
A huge 88 per cent of drivers said the Government is not doing enough to support the switch to electric cars. Nearly two-thirds said ministers are failing to provide proper backing for the transition, while another quarter warned “more needed to be done“.
Just six per cent believed the current level of support is enough. Zenith said previous incentives, including lower company car tax rates for EVs, had helped encourage drivers to make the switch.
But the company warned that recent policy changes and uncertainty over future taxes are damaging confidence.
Chancellor Rachel Reeves has been criticised for introducing pay-per-mile car taxes | GETTY
The Government has already faced criticism after pushing back the ban on new petrol and diesel car sales, while drivers are now also facing the prospect of paying by the mile.
Andy Wolff, managing director of Zenith’s corporate division, said motorists are receiving “conflicting messages” from ministers.
“These findings highlight a clear disconnect between the Government’s stated ambitions and the confidence felt by EV drivers on the road, with inconsistent policy undermining trust in the transition,” he said.
“Drivers are being offered tax incentives and grants to encourage EV adoption while simultaneously facing uncertainty around future taxation, including proposals such as pay-per-mile charges.”
The new tax changes will see EV drivers pay 3p per mile and 1.5p per mile for plug-in hybrids | PA
He added: “These conflicting messages mean only 15 per cent of EV drivers feel optimistic and confident about the transition to electric vehicles.”
Mr Wolff also warned that progress towards electric vehicle adoption could falter unless ministers provide clearer long-term support.
“Without supporting both new and second-hand EV purchasers, there is a real danger that the progress made to date will stall or be reversed altogether,” he said.
Despite concerns over future taxes, most EV owners still remain positive about their vehicles. Nearly three-quarters said their electric car is cheaper to run than a petrol or diesel model.
Electric vehicles will be subject to new pay-per-mile taxes from 2028
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REUTERSMore than six in 10 drivers also said they feel confident predicting their running costs over the next three years, unlike petrol and diesel drivers who continue to face fluctuating fuel prices.
Overall satisfaction with electric vehicles rose slightly this year. Drivers gave their EVs an average score of 8.05 out of 10, up from 8.01 last year.
The driving experience scored particularly high at 8.84, while safety was rated at 8.53. Satisfaction with battery range also improved to 7.68 after falling in previous years.
Zenith, which manages more than 167,000 vehicles across the UK, explained how around half of its fleet is now electric.