Rachel Reeves plans to introduce a pay-per-mile taxes could risk stalling the UK’s shift away from petrol and diesel, campaigners have warned.
New research from EVA England suggested enthusiasm for electric vehicles has already been falling sharply, raising fresh concerns about the pace of the transition.
A survey of nearly 2,500 drivers found just 56 per cent would now strongly recommend buying an electric car, down dramatically from 82 per cent previously.
The findings were released this week after EVA England chief executive Vicky Edmonds gave evidence to MPs on the Transport Select Committee, where experts agreed the supply of electric cars is rising, but demand is struggling to keep up.
Campaigners feared the proposed new tax system, known as eVED, could make matters worse. Under the plans, drivers may have to estimate how many miles they will drive and pay for that usage upfront, a move critics warned risks putting people off switching altogether.
The research found strong opposition to the idea, with around 70 per cent of drivers saying they were worried about paying in advance, and 77 per cent unhappy about third parties handling payments.
There were also fears that the policy could hit poorer households hardest. More than three-quarters of people earning under £26,000 said they were concerned about estimating and paying for mileage upfront. Among higher earners, that figure dropped to 56 per cent.
EVA England said this risks creating a “two-tier system” where wealthier drivers benefit from electric vehicles, while lower-income households are left behind.
Chancellor Rachel Reeves announced new pay-per-mile taxes at the Autumn Budget
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PA/DVLASpeaking to MPs, Ms Edmonds made clear that cost remains the biggest barrier. “For low and middle-income households, cost is absolutely essential. There are many who want to switch but simply cannot afford to today,” she said.
She also warned that the transition is already uneven. “Unless we make this work for a wider range of households, the transition will not reach the mass market,” Ms Edmonds told the committee.
Electric cars now make up around a quarter of new car sales in the UK, but still only account for about 5.5 per cent of all vehicles on the road.
While drivers who already own electric cars report high satisfaction, many others say they simply cannot make the numbers work.
Hybrid cars will be taxed at new pay-per-mile rates from 2028 | PA
One major issue around EV adoption is charging costs. The research found that around half of drivers without access to home charging say running an electric car is actually more expensive than using petrol or diesel.
A separate report produced by Transport & Environment suggested cheaper leasing schemes could help widen access.
Eloise Sacares, Senior Researcher in UK Vehicles Policy at Transport & Environment UK, said: “With the cheapest EV lease at £141 a month, those on low incomes are priced out and unable to benefit from lower running costs.
“By bringing leasing costs down to as low as £77 a month, we can ensure that EVs are accessible and reduce bills for all.”
The new tax changes will see EV drivers pay 3p per mile and 1.5p per mile for plug-in hybrids | PA
EVA England has now called on ministers to rethink their approach to the new taxation before pressing ahead with pay-per-mile plans.
Ms Edmonds said: “That means getting the basics right: fair taxation, lower public charging costs, and targeted support that reaches the majority of households.
“Redesign the scheme so drivers pay based on actual mileage rather than estimates, and ensure it is introduced alongside meaningful action on charging costs and affordability.”