Budget rumours - Government planning 3p per mile EV charge: comment

Colin Walker is availble for further comment and interview

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By Colin Walker

info@eciu.net

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Commenting ahead of today’s Budget on rumours that the Government is planning on introducing a 3p per mile charge for EVs [1]  Colin Walker, Head of Transport at the Energy and Climate Intelligence Unit (ECIU), said:

“Introducing a new tax on EVs while trying to encourage drivers to make the switch to electric could send them the wrong message, with the Government risking a repeat of the chopping and changing of EV policies that we saw under the previous administration.
 
“However, while this tax could cause confusion and put drivers off, the economic argument for making the move to electric driving would remain strong were it to be introduced. Even with a 3p per mile charge, our analysis [2] shows that EVs would remain significantly cheaper to run than petrol cars, delivering ownership savings of over £1000 a year. 

“Longer-term, it would be expected that all road users make a contribution. But having already increased the Vehicle Excise Duty on EVs, and given in to industry lobbying by weakening its EV sales targets, the Government risks sending mixed signals and undermining consumer confidence by trying to encourage drivers into EVs with one policy, and possibly putting them off with another. The net result could be to keep people stuck in dirtier and more expensive petrol cars for longer.”


Notes to editors:

1. https://www.bbc.co.uk/news/articles/c0mxgzpj1dvo
2. https://eciu.net/media/press-releases/2025/snap-analysis-evs-still-1-000-cheaper-to-run-with-3p-mile-charge

For more information or for interview requests:

George Smeeton, Head of Communications, ECIU, Tel: 07894 571 153, email: george.smeeton@eciu.net