Rachel Reeves issued 9-word warning over new pay-per-mile charge for UK drivers – Daily Express

Rachel Reeves’ expected electric vehicle pay-per-mile car tax fee has been criticised by industry leaders and major manufacturers, with Ford the latest to call out the radical idea. The Chancellor looks set to confirm the introduction of a 3p per mile charge for electric car owners on top of existing Vehicle Excise Duty fees.
The new charges could be applied to vehicles starting in 2028, with the new policy hoping to offset the loss of fuel duty revenues as more people switch to EVs. Based on average mileage, estimates have already predicted the new rule could add between £250 and £300 to annual bills. Polestar is among the manufacturers to criticise the move, while industry experts such as the SMMT have also been sceptical.
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However, the plan has been criticised by Ford UK’s managing director Lisa Brankin who has raised concerns over the popularity of EVs. Speaking to the BBC, Lisa said: “It’s certainly not the right time to do it.”
She added: “It’s really easy to sell people things they want. It’s hard to sell people things they don’t want. Electric vehicles in some instances have gone from being a great thing to being something that we’re trying to push people into.”
Data as of October 2025 shows that battery electric vehicles make up around 22.4% of total new car sales. This is up from the 18.1% recorded this time last year but is short of the UK’s Zero Emission Vehicle (ZEV) Mandate target which is why manufacturers may be concerned.
For 2025, firms are supposed to ensure that at least 28% of new car sales are zero-emission, with sales behind this target. Ford is under pressure to meet the targets with 80% of new car sales by 2030 or companies could face fines.There are fears that the introduction of new taxes and the loss of many major incentives could deter motorists from making the switch away from petrol and diesel.
As news of the potential charge emerged, Matt Galvin, managing director for Polestar UK described a pay-per-mile fee as “farcical”
He said: “Our Government should not be taking their focus off de-carbonising our roads, and this is a huge step backwards during a cost of living crisis, reducing confidence for many looking to switch.
“This is clearly a confused message from the Government, on one hand recently incentivising the move to zero emission driving with the Electric Car Grant and on the other planning to take this away with tax rises.”
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