The Telegraph reports today that electric vehicle drivers could face a a new pay per mile tax in the Budget. In response, Johann Beckford, senior policy adviser at Green Alliance, said:

“Faced with a tricky budget, the Chancellor mustn’t undermine policies that are working to raise revenues, when better options are available. The move to cleaner, cheaper driving is on the right track and the government has helped thousands more people buy an electric vehicle. Instead of prematurely taxing people who are making the right choice, Rachel Reeves should end the 15 year failure to implement inflation linked rises in fuel duty.”

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The UK’s plan to switch to electric cars is working. More electric vehicles were sold here in October than petrol ones, and we were the leading market in Europe in 2024. They’re getting cheaper to buy, with more options to choose from, and can save families almost £1000 a year in running costs.

Desperation to raise cash in the budget shouldn’t threaten successful policies. As more people drive electric vehicles, they won’t pay fuel duty, and these revenues must be replaced in the long term. But the premature introduction of pay per mile schemes in New Zealand and Iceland saw sales drop significantly. Slowing the transition to electric vehicles in the UK will leave our car industry at risk as global markets shift.

Tax changes should support people to do the right thing. Preventing fuel duty from rising in line with inflation has benefited the richest the most, cost the Treasury an estimated £133bn and substantially increased pollution. Meanwhile petrol and diesel retailers have doubled their profits in recent years.