Millions of drivers have warned that they are put off from investing in an electric car because of Rachel Reeves’ controversial new pay-per-mile car tax charges.
New data shows that 55 per cent of UK drivers said they were less likely to switch to a new or second-hand electric vehicle as a result of the new pay-per-mile car taxes.
Chancellor Rachel Reeves announced the measures in last year’s Autumn Budget for electric vehicle and hybrid owners to pay for their share of the road.
From April 2028, electric car drivers will be charged 3p per mile, while hybrid owners are set to be charged 1.5p per mile, as Labour looks to replace revenues lost from fuel duty.
The mileage-based charging scheme has been criticised by experts for putting drivers off from ditching their older petrol and diesel cars in favour of electric vehicles.
The fresh research, from Electrifying.com and the AA, also found that just 14 per cent of people agreed with the statement: “The overall running costs of an electric car are lower than those of a petrol or diesel car.”
This is despite new analysis showing electric vehicles are significantly cheaper to run than equivalent petrol and diesel cars thanks to lower fuel and maintenance costs.
Ginny Buckley, founder and CEO of Electrifying.com, explained that the data should be a serious “wake-up call” for the Chancellor ahead of the launch of electric Vehicle Excise Duty (eVED).
New research has found that millions of drivers could be put off from buying an electric car because of pay-per-mile tax measures
|
DVLA
She continued, saying: “Once again, we’re seeing confusing Government decision-making around electric vehicles that raises questions rather than builds confidence among car buyers considering making the switch.
“As our survey shows, the proposed pay-per-mile tax sends the wrong signal at the wrong time. Instead of accelerating the EV transition, it risks slamming on the brakes.
“You cannot claim to support mass adoption while undermining it with the threat of additional taxation.”
Drivers can further slash their costs by investing in an EV-friendly tariff that will dramatically reduce the amount they pay to charge at home.
Chancellor Rachel Reeves introduced a number of car tax changes in the Autumn Budget last year | PA
Despite this, only one quarter of drivers reported that they were aware of off-peak energy deals that allow EV owners to slash home charging costs.
The research suggested that the Government had caused years of uncertainty for millions of drivers by announcing the new policy years before it is set to be introduced.
Forecasting from the Office for Budget Responsibility warned that the pay-per-mile measures announced by the Chancellor would lead to around 440,000 fewer electric car sales over the coming years.
While around 320,000 of these sales will be offset by other Budget measures, including increased funding for the Electric Car Grant scheme, the Government’s actions will still have a huge impact on EV uptake.
The Government boosted the Electric Car Grant with additional funding in the Autumn Budget
|
MINIEdmund King, AA President, highlighted that conditions need to be improved for drivers to switch to electric, with the UK currently at a 48.8 out of 100 in the AA UK Readiness Index.
He blasted the Government’s “mixed messaging” on the transition to electric vehicles, impacting the perception of zero emission cars for drivers confused about the benefits and drawbacks.
The expert added: “The early adopters have already made the switch, but mainstream motorists need more accurate information to convince them, even with eVED, if they can charge at home, they will still be better off going electric.
“The EV transition is essential, but drivers still need the right incentives and information to make that leap of faith.”