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Rachel Reeves is poised to clobber drivers with despised pay-per-mile vehicle taxation alterations in the Autumn Budget. The Telegraph reports that electric car owners will face a fresh pay-per-mile levy. The mileage-based charges are expected to be unveiled in the forthcoming Budget on November 26. According to reports, it's anticipated that the Labour government will impose a 3p per mile charge on top of existing road duties for electric vehicles. The proposal, due to commence from 2028 following a consultation period, is set to see typical motorists confronting an additional £250 annually. Tory shadow chancellor Sir Mel Stridefumed: "If you own it, Labour will tax it. It would be wrong for Rachel Reeves to target commuters and car owners in this way just to help fill a black hole she has created in the public finances." He added: "With Labour's cost of living crisis, now is not the time to hit hard-working families and businesses with another tax raid." This fresh component is being termed "VED+" and positioned as a method to ensure eco-friendly vehicle drivers contribute more each year, reports Birmingham Live . The Treasury has declined to comment on any conjecture surrounding the approaching fiscal announcement on November 26. Since April, newly registered electric and zero-emission cars with a list price above £40,000 have been liable for the standard road tax rate of £195, plus the 'expensive car supplement' of £425 annually. Last year, the Association of Fleet Professionals (AFP) cautioned that implementing a pay-per-mile system for electric vehicles might trigger "unforeseen effects". AFP chair Paul Hollick explained how the new public charging rate caught fleets off guard, particularly affecting drivers who had already been voicing concerns about inadequate business trip compensation, leaving companies "on the back foot" as HMRC failed to provide initial guidance on implementing the new rate. "What we've had is chaos, absolute chaos, and there's not really been a huge amount of clarification," he added. "All we want to try and do is be able to reimburse our drivers simply and equitably... but the new rate has meant that it is now very complicated. We've got a lot of members at the moment that don't really know what to do." Speaking to the Daily Star, Mairéad Warren de Búrca , managing director in Alvarez & Marsal’s Indirect Tax practice, said: "A per-mile charge for EVs would mark a major shift in how the Treasury raises revenue from road users. The Chancellor faces a clear tension: maintaining fairness as fuel-duty receipts collapse, without discouraging the switch to electric. "The measure makes fiscal sense, but as ever, timing will be everything. If the government wants credibility on net-zero and tax reform, it must show this is about modernising revenue, not penalising greener drivers. "The EV sector will be disappointed, with many hoping for a cut in VAT on public charging from 20% to 5% to match the rate for home charging. The real challenge, though, is delivery – a per-mile system would likely rely on manual or self-reported data, creating an administrative headache for the government." For the latest breaking news and stories from across the globe from the Daily Star, sign up for our newsletters .
