Motorists are being urged to take action ahead of new car tax rules launching soon that will see motorists pay every time they drive.
Chancellor Rachel Reeves confirmed that the Government would introduce new rules to charge people a certain amount of money every time they travel.
The Electric Vehicle Excise Duty (eVED) scheme will see motorists slapped with a new mileage charge from April 2028, in addition to their existing car tax charges.
Electric vehicle owners will be charged three pence per mile, while hybrids will attract a rate of 1.5p per mile when the rules are introduced in 2028.
The Chancellor said this was being done to ensure the Government does not lose out on billions of pounds in revenue from fuel duty as more drivers ditch their petrol and diesel vehicles.
She added that it would help the Government double road maintenance funding in England over the course of the current Parliament, since “all cars contribute to wear and tear on our roads”.
To help the Government adjust to the new rules, a consultation has been launched to hear from key players in the industry on how the scheme should be introduced and run.
It also provides further detail on how the eVED scheme will work, with it remaining open until March 18, 2026.
Chancellor Rachel Reeves has been criticised for introducing pay-per-mile car taxes
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GETTYPaul Hollick, chair of the Association of Fleet Professionals, called on members to engage with the consultation to raise any issues and highlight potential pitfalls.
He noted that members of the AFP had broadly accepted the new car tax plans to recover lost revenue from the switch away from petrol and diesel cars.
Mr Hollick continued, saying: “At a strategic level, the timing is highly questionable. Acceptance of EVs in the fleet and especially retail sectors is growing steadily but still highly uneven.
“Adding to costs before electric cars become the norm, especially with a new form of taxation, is a very risky move.”
Public reaction to the plans has been negative, with many drivers questioning why the Government would introduce these rules at a time when drivers are still mixed about the uptake of electric vehicles.
Labour’s Electric Car Grant has been a bright spot for the Government in terms of helping drivers adjust to EVs with funding incentives of up to £3,750.
More than 45 models are available as part of the Electric Car Grant from some of the most popular manufacturers, including Ford, Mini, Nissan and more.
Despite this, Mr Hollick acknowledged issues with how the scheme will work, especially if the data is tracked when a driver takes their vehicle to an MOT garage.
The Ford Puma Gen-E is one of eight models included in the £3,750 Electric Car Grant
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FORDHe said: “Cars under three years old, representing the vast majority of fleet vehicles, don’t visit MOT stations and it’s an area where we know there is undercapacity, so this will mean lost work time and unnecessary disruption.
“It certainly doesn’t fit with the consultation’s stated aim of minimising the administrative burden of eVED.
“We’re planning on making our views heard firmly as an industry body and it is essential individual fleets to do the same.”
He called on drivers to give their feedback before the consultation ends on March 18 to ensure the Government makes the system as fair as possible.