Policy & regulationPolicy & MarketUnited Kingdom

UK softens electric vehicle mileage tax but industry warns timing still threatens EV uptake

By Eve

The Treasury has confirmed it will scrap mandatory mileage checks for cars under three years old and simplify fleet licensing rules under the Electric Vehicle Excise Duty (eVED) pay-per-mile charge due from April 2028. While fleet and consumer groups welcome the concessions, industry leaders including Electric Vehicles UK CEO Tanya Sinclair and New AutoMotive CEO Ben Nelmes warn the fundamental tax still risks making electric cars more expensive to run at the wrong moment for the transition.

Why it matters: Charge point operators and fleet procurement teams face continued uncertainty over the policy framework that will shape EV running costs and adoption rates from 2028. The mixed industry response signals that the tax may still dampen demand for electric vehicles among commercial fleets and consumers, potentially affecting utilisation forecasts for charging infrastructure investments.