Skip to content
Policy & Market
United Kingdom

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

By Eve

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.

Source

Original title
“Rachel Reeves confirms new EV charge for UK drivers”
Published
10 February 2026
Updated
18 July 2026
Also covered by
Google News

Related news

EU to cap Chinese hybrid imports at 350,000 vehicles per year from December

The European Commission has confirmed a quota limiting Chinese hybrid electric vehicle imports to 350,000 units annually, down from an expected 800,000 battery and plug-in hybrids this year. The measure, agreed in Beijing last week and enforceable from December under WTO safeguard rules, aims to halve China's EU market share from 6% to 3% over a four year period. Volkswagen's leadership has backed the plan to support domestic manufacturing.

Why it matters

The quota will reshape EV supply chains and may accelerate local manufacturing investment by Chinese OEMs seeking to maintain EU sales, directly affecting charging infrastructure planning as fleet composition shifts. CPOs and site hosts should anticipate changes in vehicle mix and charging demand patterns as the policy takes effect.

European Union
China
12 Oct 2026

European Union (eu) · Source

Australian energy regulator backs network-funded kerbside EV charger rollout

The Australian Energy Market Commission has granted preliminary approval for a plan to install 14,000 kerbside EV chargers on power poles in underserved areas, funded through household electricity bills. Network operators have pushed the proposal for years, arguing it will address charging black spots in major cities where private deployment is not commercially viable.

Why it matters

The decision creates a regulated utility-led procurement pathway for thousands of charge points in Australia, potentially opening new installation and equipment supply opportunities in areas private CPOs have avoided. The funding model through consumer bills removes commercial risk for network operators entering the charging market.

Australia
11 Oct 2026

Australian Energy Regulator · Source

UK cuts home charging VAT to 0% but leaves public charging at 20%, widening driveway divide

From 1 October, domestic electricity VAT in the UK dropped to 0%, cutting home EV charging costs by an estimated £40 per year for drivers with off street parking. Public charging remains subject to 20% VAT, prompting char.gy CEO John Lewis to call the disparity unfair and urge Labour to reduce public charging costs. The policy change, linked to Andy Burnham's initiatives, has been criticised for widening the so called driveway divide between EV owners with and without private parking.

Why it matters

The VAT gap between home and public charging may slow uptake among drivers reliant on public infrastructure, pressuring charge point operators to absorb cost differences or risk losing customers. Policymakers and CPOs face renewed calls to level the playing field, which could influence future subsidy design and site economics for on street and destination charging.

United Kingdom
11 Oct 2026

Andy Burnham · Source