Ahead of the UK Government Budget taking place next week, serious concerns have been raised about the possibility that a new pay-per-mile charge will be introduced for electric vehicles from 2028.
The boss of Ford UK has warned Rachel Reeves against increasing taxes on electric vehicles saying it could discourage drivers from making the switch away from petrol and diesel cars.
Commenting on the possible new tax, Janet Finch-Saunders MS said:
“Now is not the time to increase taxes on road users. This week we have seen further evidence that the cost of living, and especially food, is increasing, so why would anyone want to add further pressure on people’s private pockets?
“As leaders in the car sector have warned, the pay-per-mile charge would have a detrimental impact on the switch away from petrol and diesel cars.
“Keir Starmer was more than willing to fly to Brazil so to re-iterate our nation’s commitment to Net Zero in COP30. Yet, in the same month, his government are looking at a policy which would have a negative impact on achieving that target.
“This UK Government is quickly running out of road”.
ENDS