9:02 am, November 6, 2025
The AA had warned the government against introducing a ‘poll tax on wheels’ in the form of a per mile charge on EVs.
The Daily Telegraph reports that the highly controversial policy will be included in this month’s Budget, as Labour grapples with a reduction in income from fuel duty.
It is understood that the policy will be introduced in 2028 following a consultation, and would cost average EV drivers £250 per year.
Per mile charges have previously been mooted under the Tories but the idea was never followed up on, due to it being deemed too politically toxic.
However, with Chancellor Rachael Reeves desperate to generate more revenue, it now appears that the move is well and truly on the cards.
In response to the news, AA president Edmund King, warned that the government to ‘tread carefully’.
He said: ‘Whilst we acknowledge the Treasury is losing fuel duty revenue as drivers go electric, the Government has to tread carefully unless their actions slow down the transition to EVs.
‘The ZEV mandate for 28% of new car sales to be zero emissions this year will not be met as sales are running at just 22%.
‘We need to see the detail of this proposal to ascertain whether these new taxes will be equitable or a poll tax on wheels.’
The so-called poll tax – introduced by Margaret Thatcher’s government in Scotland in 1989 and then England and Wales the following year – was a fixed payment for all adults, which sparked violent protests.
According to the Telegraph, the EV scheme will involve users estimating how far they will drive over the following 12 months, and making an extra payment on top of vehicle excise duty (VED).
Any miles over their estimate will need to be topped up, but some money would carry over if someone clocks up fewer miles.
Journey examples of a 3p per mile fee include £12 between London and Edinburgh, £5 between Cambridge and Bristol, and £2 between Liverpool and Leeds.
It comes after EVs’ exemption from VED was removed in April and the SMMT says that the move would be the ‘wrong measure at the wrong time’.
A spokesman for the trade body said: ‘We recognise the need for a new approach to motoring taxes but at such a pivotal moment in the UK’s EV transition, this would be entirely the wrong measure at the wrong time.
‘Introducing such a complex, costly regime that targets the very vehicles manufacturers are challenged to sell would be a strategic mistake – deterring consumers and further undermining industry’s ability to meet ZEV mandate targets, with significant ramifications for perceptions of the UK as a place to invest.
‘A smarter, fair and future-ready taxation system requires a fundamental rethink – one that must be done in full partnership with the industry and other stakeholders.’
EV experts have also hit out at the plans, saying they would ‘penalises those who switched in good faith’.
Ginny Buckley, chief executive of EV advice site Electrifying.com, said: ‘This is yet another example of mixed messaging from the government.
‘Drivers are being encouraged to go electric, then hit with the threat of new taxes – you can’t drive the EV transition with one foot on the accelerator and the other on the brake.
‘This adds extra cost for EV drivers who can’t charge at home and already pay more per mile on public chargers than many petrol drivers.
‘It also penalises those who switched in good faith, based on promised savings.’
She added that if the Government introduces this it should also unfreeze fuel duty, which has not risen with inflation for more than 14 years.
Tanya Sinclair, chief executive of lobby group Electric Vehicles UK, said there is ‘no doubt’ the system of paying for vehicle usage ‘needs fundamental reform’, but stressed the importance of how this happens.
She added: ‘Government must take the time to consult properly, design carefully and communicate transparently – a process that will take years, not months.’
A Government spokesperson said that a ‘fairer’ motoring tax system is needed as the industry continues to pivot towards EVs.
‘Fuel duty covers petrol and diesel, but there’s no equivalent for electric vehicles,’ they said.
‘We want a fairer system for all drivers whilst backing the transition to electric vehicles, which is why we have invested £4 billion in support, including grants to cut upfront costs by up to £3,750 per eligible vehicle.
‘Just as it is right to seek a tax system that fairly funds roads, infrastructure and public services, we will look at further support measures to make owning electric vehicles more convenient and more affordable.’
