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The new 3p pay-per-mile car tax from the Labour Party government will be increased to 5p for some drivers. Which? has analysed the cost of charging EVs at chargers across the UK, with home chargers at off-peak rates costing just 2p per mile. On top of the 3p surcharge from Labour Party Chancellor, it means road users will fork out 5p. Which? said: "As you can see, the cost per mile increases dramatically when you charge at a public ultra-rapid charger. "For comparison, the cost to refuel a typical large petrol or diesel SUV is 15p per mile (based on paying 134p for petrol and 140.49p for diesel). So when using a public ultra-rapid charger, you’re paying significantly more to refuel." READ MORE There's one group of drivers you have to feel so sorry for in new UK pay-per-mile car tax The new tax is intended to plug the financial gap left by falling revenue from fuel duty, as more drivers switch to electric cars (which don’t pay fuel duty). The government reportedly frames the move as a “matter of fairness,” noting that petrol and diesel drivers pay an average of £600 a year in fuel duty. If announced, the scheme would undergo a consultation and is not expected to be implemented until 2028. Professor ManMohan Sodhi, Professor of Operations and Supply Chain Management at Bayes Business School (City St George’s, University of London) said: “A small tax on electric vehicles (EVs) is very much needed, and rational for many reasons. "Fuel duty on petrol and diesel brings the government £24.4 billion, which it would lose if all drivers were to switch to electric. In addition, petrol and diesel car drivers already pay about 7p per mile in tax, so 3p per mile for EV drivers is not unreasonable. “That said, the situation is politically fraught, with the government still claiming to invest in EV infrastructure that drivers will not see. In contrast, drivers will be reminded of the 3p per mile tax. "The move will be widely condemned for sending mixed messages about EV adoption, and without doubt there will be movement away from pure EVs at the very least. “Black box insurance uses a device in the car to make drivers’ habits transparent to the car insurer, where erratic and bad drivers can expect higher insurance over time. "The device helps provide a ‘driving score’ that both the driver and the insurer can use. Potentially, such a device could be used with EVs to monitor miles driven for tax purposes, whereas petrol and diesel car drivers are taxed when they purchase fuel.”
