Electric Vehicle Tax Set at £255 Annually in Autumn Budget

Chancellor Rachel Reeves announced a new pay-per-mile tax for electric vehicle (EV) drivers, set to begin in 2028, costing an average of £255 annually for those driving 8,500 miles. This policy aims to raise £1.4 billion in taxes but has faced criticism for potentially reducing EV ownership by 440,000 vehicles. Additionally, fuel duty will rise for the first time in 16 years, with annual increases starting in 2027, although the current 5p cut remains until September 2026.

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