Search: Rachel Reeves

Chancellor Rachel Reeves has confirmed a new pay per mile levy starting in April 2028, charging electric vehicle owners 3p per mile and plug in hybrid owners 1.5p per mile. The electric vehicle excise duty (eVED) means an average driver covering 8,000 miles annually would pay £255, with the Government introducing the measure to offset fuel duty losses from the shift to electric vehicles. The charge follows the removal of vehicle tax exemptions for EVs in 2024.

Why it matters: The new mileage based tax may affect total cost of ownership calculations for fleet operators and workplace charging schemes, potentially slowing EV adoption rates among cost sensitive buyers. CPOs and charge point installers should monitor whether the 2028 levy influences procurement timelines or shifts demand toward home charging to reduce tracked mileage.

Chancellor Rachel Reeves has confirmed that around 1.8 million electric vehicle drivers in the UK will save approximately £25 per year on home charging costs from April, following a reduction in the Ofgem energy price cap. A full 71.1 kWh home charge will cost around £17.54, bringing monthly savings of up to £2.15, as part of wider household energy bill reductions totalling £117 annually. Industry figures say the move strengthens the economic case for EV adoption, with further savings available through off peak charging.

Why it matters: Lower running costs reinforce the total cost of ownership advantage for electric vehicles, potentially accelerating fleet electrification decisions and supporting the business case for workplace and depot charging infrastructure as EV uptake continues at record levels in the UK market.

UK Chancellor Rachel Reeves has confirmed that the government will not reduce fuel duty or cut VAT on electric vehicles, according to Professional Driver Magazine. The decision maintains the current tax structure for both petrol and diesel vehicles and EVs, despite ongoing calls from industry groups for fiscal incentives to accelerate EV adoption. The announcement provides clarity on the Treasury's near term tax policy affecting transport and charging infrastructure investment.

Why it matters: The ruling removes hopes for VAT relief that could have lowered EV purchase costs and charging tariffs, potentially slowing fleet electrification timelines. CPOs and site hosts must now plan infrastructure rollouts without expecting tax led demand stimulus in the immediate policy cycle.

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.

The UK Government will raise first year Vehicle Excise Duty to £5,690 from 1 April 2026 for 59 petrol and diesel models across 24 manufacturers, including Ford, BMW, Mercedes, Audi, Toyota, Porsche, Lotus, Lamborghini and McLaren. The charge applies to vehicles emitting over 255 g/km of CO2 and follows a £2,745 increase introduced in April 2025 that brought the rate to £5,490. Chancellor Rachel Reeves announced the measure to widen the cost gap between high polluting vehicles and electric vehicles.

Why it matters: The escalating tax penalty on high emission vehicles is designed to accelerate fleet electrification and boost EV adoption, directly expanding the addressable market for charging infrastructure. Procurement teams and charge point operators should anticipate increased demand from both private buyers and corporate fleets seeking to avoid the levy.

Chancellor Rachel Reeves is reportedly fast tracking plans to reduce VAT on public EV charging from 20% to 5%, matching the rate already applied to home chargers, according to The Telegraph. The move follows industry pressure and concerns that the government's pay per mile road tax, due 1 April 2028, has already slowed EV uptake. The Office for Budget Responsibility forecasts the tax could reduce EV sales by around 440,000 units between November 2025 and March 2031, though the Treasury disputes this, estimating a shortfall closer to 120,000 by decade end.

Why it matters: A VAT cut to 5% would eliminate the pricing gap between public and home charging, potentially boosting utilisation at public charge points and making the business case stronger for CPOs serving drivers without off street parking. The policy shift also signals government willingness to support public charging infrastructure amid broader concerns over EV adoption rates.