Labour has issued a new update on pay-per-mile car tax fees over concerns that petrol and diesel drivers could be affected. Rachel Reeves confirmed the introduction of a new electric Vehicle Excise Duty (eVED) charge last Autumn, with the scheme set to launch in 2028. The new system will see electric car owners charged 3p per mile to use the roads, with plug-in hybrid owners paying 1.5p per mile.
The new fee is being introduced to offset the loss of petrol and diesel fuel duty revenues as motorists switch to EVs. However, Harriet Cross, Conservative MP for Gordon and Buchan, warned Labour might not stop there, suggesting that EV charges could act as a "gateway" to petrol and diesel road pricing fees.
She accused the Government of starting on a "slippery slope" with new tax fees and warned any extra charges on petrol and diesel drivers would "cripple" rural communities.
Speaking in the Commons, Harriet asked: "I would be grateful for confirmation that pay-per-mile for electric vehicles will not be a gateway to pay-per-mile for petrol and diesel vehicles. That would cripple rural communities, rural families, and rural businesses.
"It is a slippery slope that the Government have started on with EVs, and if the system progresses to cover petrol and diesel vehicles, it will be a hell of a lot worse for a lot of people.
She added: "Just for clarification, my point was that that is a pay-per-mile scheme and that the pay-per-mile basis would not be extended to petrol and diesel cars. Is the charge per mile on EVs a gateway for that extending to petrol and diesel vehicles?"
Dan Tomlinson, Exchequer Secretary to the Treasury, seemed to alleviate fears for now, making clear that eVED is only set to affect electric models. However, he stressed that any potential tax decisions will not be made at this stage.
Dan said: "The EVED charge is on electric cars because they do not pay fuel duty. Petrol cars do pay fuel duty, which, because it is on a litre of petrol, is a charge that is determined by how much someone drives."
He added: "As ever, decisions on taxation will be taken at the appropriate time, based on the best evidence and with careful regard to the public finances.
"The Government will continue to take the right decisions, protecting the public finances and supporting families with the cost of living."
-
Saturn changed its course, till 17th April these 3 zodiac signs will get the support of luck, chances of financial gain and success!
-
Do hands turn red while cutting beetroot? Adopt these 5 magical tricks, stubborn stains will disappear within minutes:
-
Nicola Peltz hits back at the Beckhams
-
You Can Tell If Your Job Respects You By The Way Your Boss Handles Your Financial Problems
-
Each Zodiac Sign’s Tarot Horoscope For March 22, 2026
