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Wednesday, Jul 02, 2025

Campaigners Propose Pay-Per-Mile Charge for UK Electric Cars

Campaigners have proposed a pay-per-mile charge for electric cars in the UK to address an estimated £5bn tax revenue gap. The Campaign for Better Transport suggests immediate action, while the RAC supports a system based on emissions. Despite possible political backlash, this reform aims to ensure fair taxation for all vehicles.
Campaigners have urged the Chancellor to adopt a pay-per-mile road charging scheme for electric vehicles (EVs) to address a £5bn shortfall in tax revenues caused by the decline in fuel duty as petrol and diesel cars are phased out.

The Campaign for Better Transport (CBT) highlighted this in a letter to Rachel Reeves, stressing that tax revenues could severely drop between 2028 and 2033.

Silviya Barrett of CBT emphasized the urgency, proposing a small initial charge on zero-emission vehicles with exemptions for current drivers.

The RAC's policy head, Simon Williams, supported the idea, suggesting a tiered system based on emissions.

The Confederation of Passenger Transport also backed the scheme for its potential benefits in meeting net-zero carbon targets and reducing congestion.

Despite opposition and precedent for political backlash, the campaigners argue for immediate action to establish fair road taxation for all vehicles.
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