UK confirms 3p per mile electric vehicle tax from April 2028

Chancellor Rachel Reeves has announced a new distance-based tax for electric vehicle drivers in the UK, charging 3p per mile for battery EVs and 1.5p per mile for plug-in hybrids from April 2028. A driver covering 10,000 miles annually would pay £300 under the scheme, which the Treasury says addresses declining fuel duty revenue as motorists switch to electric. The Electric Vehicle Excise Duty will be collected alongside existing Vehicle Excise Duty.

Why it matters: The new charge adds a predictable operating cost to fleet and public charging economics from 2028, potentially influencing total cost of ownership calculations for charge point operators and their commercial customers. Rural and high mileage users may face steeper bills, which could affect demand patterns at motorway and destination charging hubs.