Millions of drivers slapped with NEW 3p-per-mile tax in brutal Budget – The Sun
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Treasury want the tax system to be fairer as petrol and diesel drivers already pay fuel duty
MILLIONS of electric vehicle drivers will be hit with a new pay-per-mile tax costing them hundreds of pounds every year.
EV motorists face a charge of around 3p per mile on top of other road levies which could set them back £250 every year.
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In what may be the biggest Budget shambles in history, the OBR has accidentally published the entirety of Rachel Reeves’ measures half an hour before she was due to deliver them.
The Budget is meant to be top secret until the Chancellor delivers her speech because so much of it is market sensitive.
It revealed there will be a new mileage tax for electric vehicles from April 2028.
The report says: “In 2028-29, the charge will equal £0.03 per mile for battery electric cars and £0.015 per mile for plug-in hybrid cars, with the rate per mile increasing annually with CPI.”
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The Sun first reported that the Chancellor was first looking at the levies on EV drivers last month as part of raising revenue plan.
Around six million people are expected to be behind the wheel of an EV when the new tax comes in.
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The Treasury will argue that the tax is a matter of fairness as petrol and diesel motorists pay around £600 in fuel duty annually.
Whitehall insiders point to how petrol and diesel drivers pay for schools, hospitals and road maintenance through fuel duty costs.
But the move could mean a journey from London to Edinburgh will add £12 to the cost and a shorter journey from the capital to Oxford will be an extra £3.
The new system will not monitor every journey and instead will focus on taking the sum based on estimated travel.
The extra tax will come on top of the £195 that electric vehicle drivers now pay for vehicle excise duty. They were exempted until this year.
By JACK ELSOM, Political Editor
THE clue ought to be in the name “Labour”, founded more than 100 years ago as the party of the workers.
Those same workers are the losers of a Labour Budget that has rinsed them while the dole queue grows.
More than a million will be dragged into paying higher rates of income tax as a result of Rachel Reeves’ decisions.
The Chancellor put it best herself last year when she promised to unfreeze these thresholds because extending them “would hurt working people”.
How weasel those words now sound to the scores of grafters, grinders and strivers who rise each morning to make an honest living.
All while the long-promised action to tackle our eye-watering benefits bill has been ducked yet again.
Far from reining in ballooning welfare spending, today’s Budget will increase it by £9billion.
And Labour MPs – many who seem increasingly out of touch from their voters – are delighted.
They have extracted their flagship demands of abolishing the two-child benefit cap, on the back of other wins in torpedoing other cuts.
And they were licking their lips as Ms Reeves announced a “mansion tax” and higher “gambling taxes”.
The Chancellor’s repeated insistence that this was a Budget were “my choices” had all the conviction of a hostage reading out their captor’s script.
She might have succeeded today in placating her restless MPs – but at what cost?
For the economy, a shrinking number of workers subsidising a growing number of benefit claimants is a ticking timebomb.
For society, those that set their alarm clocks to go to work risk seriously resenting those who don’t.
And for Labour, they risk falling through the electoral chasm of that new defining faultline in British politics.
Shadow Chancellor Mel Stride has said: “If you own it, Labour will tax it.
“It would be wrong for Rachel Reeves to target commuters and car owners in this way just to help fill a black hole she has created in the public finances.
“With Labour’s cost of living crisis, now is not the time to hit hard-working families and businesses with another tax raid.”
Ginny Buckley, boss of EV site Electrifying, previously warned the government not to send conflicting messages to electric vehicle drivers.
She said: “Drivers are being encouraged to go electric, then hit with the threat of new taxes – you can’t drive the EV transition with one foot on the accelerator and the other on the brake.”
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Fuel duty itself has been frozen since 2011 thanks to The Sun’s Keep It Down campaign.
The levy was reduced by a further 5p in 2022 in the wake of the Russian invasion on Ukraine.
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