UK faces backlash after leak reveals new road tax for electric vehicles
Published on: Nov 26, 2025
Electric car drivers will be charged 3p per mile, while plug-in hybrid owners will pay 1.5p per mile.
A leaked Office for Budget Responsibility (OBR) report has confirmed that electric and hybrid vehicle owners in the United Kingdom will face a new pay-per-mile road tax from April 2028.
According to the document, electric car drivers will be charged 3p per mile, while plug-in hybrid owners will pay 1.5p per mile, with both rates rising annually in line with inflation. The government argues the levy is roughly “half the fuel duty rate paid by drivers of petrol cars.” The OBR apologised for the leak and said it was investigating how the report was released ahead of the Budget.
An EV driver travelling 8,500 miles a year would pay around £255, on top of the standard £195 Vehicle Excise Duty. The OBR estimates the scheme could raise £1.1bn in 2028-29, rising to £1.9bn by 2030-31, though revenues depend heavily on future EV uptake. The report warns the tax could make electric cars less attractive, potentially cutting sales by around 440,000, partly offset by other government incentives.
James Courts, head of policy at Octopus Electric Vehicles, said that while EV drivers should contribute to road funding, introducing charges “far too soon” risks undermining progress. “As we’ve seen in other countries, introducing a charge now would stifle growth and be self-defeating,” he said.
The policy comes as the UK prepares for a 2030 ban on new petrol and diesel cars, raising questions about how to balance revenue needs with climate goals.
