Pay per mile update for drivers as minister issues warning on BBC

Electric vehicle (EV) drivers have been warned by the government that a ‘fair’ tax system for all motorists is needed amid reports they face new charges to drive. The announcement was made by Transport Secretary Heidi Alexander during her appearance on the BBC’s Sunday with Laura Kuenssberg show, where she was questioned about the potential introduction of a new pay-per-mile scheme.

The BBC presenter grilled the cabinet minister about rumours the government plans to increase costs for EV drivers in the upcoming Budget. There has been considerable speculation about the introduction of a new pay-per-mile scheme targeting EV drivers.

This is due to the fact that while petrol and diesel drivers pay fuel duty, EV drivers do not. As more individuals switch to EVs, governments worldwide will see their revenue from fuel duty decrease significantly, and alternative tax-raising methods become necessary.

Kuenssberg questioned the cabinet minister about the government’s apparent intention to make driving an EV more expensive, despite announcing increased support to reduce the purchase cost, reports the Mirror. It was revealed overnight that Chancellor Rachel Reeves will add £1.3 billion to a grant reducing upfront costs for electric car buyers in Wednesday’s Budget, potentially slashing up to £3,750 off the price of an EV.

In response, the minister stated: “I am not going to pre-empt the Budget. The Chancellor will be on your show next week.

“As we make the transition to EVs, two things can be true at the same time. We need a fair vehicle tax system for all motorists because EVs, like drivers of petrol and diesel cars, are driving on roads that require maintenance.

“We have got ageing infrastructure, motorways that were built in the 1960s and 1970s, so we need to have a fair taxation system that is future-focused, but we are not going to do anything to jeopardise the transition to EVs and that will remain front and centre.”

The Treasury has also remained non-committal regarding its future plans. Earlier this month, the Telegraph reported that EV drivers could potentially face pay-per-mile charges even when driving overseas.

The claim sparked immediate criticism from some motoring experts. Paul Barker, from Auto Express magazine, commented: “It wouldn’t be reasonable to charge drivers for mileage clocked up abroad when they’re not using UK roads or infrastructure, so getting the balance right will be vital to any sort of acceptance by motorists.”

In response, the Treasury would only state: “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.”