Labour 'to hit EV drivers with pay-per-mile tax' at Budget
Discussion
https://www.lbc.co.uk/article/ev-drivers-pay-mile-...
I didn't vote for Labour but God help us all!
LBC said:
Electric vehicle (EV) drivers will be hit with a new pay-per-mile tax by Rachel Reeves in November's Budget, it has been reported.
Plans being drawn up by the Chancellor will see EV drivers charged 3p per mile on top of other road taxes, according to the Telegraph.
The scheme will begin in 2028 after a consultation - with the new levy intended to claw back money amid falling fuel tax revenues.
The Treasury is set to frame the changes as a way to even up taxes between drivers of petrol and electric cars.
Currently, diesel drivers are paying £600 on average more than their EV equivalents.
Around six million people are set to be driving electric vehicles by the time the tax is implemented.
Sir Mel Stride, the Conservative shadow chancellor, said: “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.
“With Labour’s cost of living crisis, now is not the time to hit hard-working families and businesses with another tax raid.”
The move is set to raise £1.8billion by 2031 as the Chancellor seeks to plug a black hole in Britain's finances.
Treasury estimates suggest that by 2040, about £12bn will be lost in tax revenue because less petrol is being used.
I was expecting a fuel duty type VAT added to electricity charge point pricing as per fuel stations but this is worst...Plans being drawn up by the Chancellor will see EV drivers charged 3p per mile on top of other road taxes, according to the Telegraph.
The scheme will begin in 2028 after a consultation - with the new levy intended to claw back money amid falling fuel tax revenues.
The Treasury is set to frame the changes as a way to even up taxes between drivers of petrol and electric cars.
Currently, diesel drivers are paying £600 on average more than their EV equivalents.
Around six million people are set to be driving electric vehicles by the time the tax is implemented.
Sir Mel Stride, the Conservative shadow chancellor, said: “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.
“With Labour’s cost of living crisis, now is not the time to hit hard-working families and businesses with another tax raid.”
The move is set to raise £1.8billion by 2031 as the Chancellor seeks to plug a black hole in Britain's finances.
Treasury estimates suggest that by 2040, about £12bn will be lost in tax revenue because less petrol is being used.
I didn't vote for Labour but God help us all!
I guess fuel duty relief is disappearing as well. I think the optics of this might give a perception of a higher tax on EVs if there is still the standard rate of VED applied despite overall it still being a lot less than ICE (assuming this self declared pay-per-mile doesn’t apply to them as well).
In theory makes sense, £300 per year for the average motorist but means you can keep the cheaper costs of fueling your car with electric without needing the infrastructure to tell if your home electric is going towards your car or your house. Also means those using the roads more pay more which again makes sense.
Will be interesting to see how they police the whole mileage thing tho, I would have thought that would encourage clocking cars at every MOT (where presumably the mileage data would be obtained). The alternative of Having a box send details of every time you drive the car to the government doesn't sound like something that would go down very well!
Will be interesting to see how they police the whole mileage thing tho, I would have thought that would encourage clocking cars at every MOT (where presumably the mileage data would be obtained). The alternative of Having a box send details of every time you drive the car to the government doesn't sound like something that would go down very well!
In New Zealand its done for diesel and ev s already. You buy KM s in 1000km blocks for a set price depending on the car type/lorry you pay more or less per 1000km.
Checking is done on each mot, old cars people used to fit switches that cut the speedo but had to be hidden somewhere the police wont find it. I think on routine stops the police drive the car up the road to check it works.
Companies that do a lot of off road km choose to fit a digital gps system that monitors where its being driven so you only pay for km s on the public roads. (My mate is a stonemason and drives 20km a day down a private quarry road so thats not counted under the system)
In return diesel has less tax on it.
Checking is done on each mot, old cars people used to fit switches that cut the speedo but had to be hidden somewhere the police wont find it. I think on routine stops the police drive the car up the road to check it works.
Companies that do a lot of off road km choose to fit a digital gps system that monitors where its being driven so you only pay for km s on the public roads. (My mate is a stonemason and drives 20km a day down a private quarry road so thats not counted under the system)
In return diesel has less tax on it.
Edited by moles on Thursday 6th November 04:48
How will they determine the distance travelled? Cameras? The anti-tamper, RFID numberplates that we were all going to be getting a few years back?
Will the method be transferable to ice vehicles?
Easy to introduce the tax for one class of vehicles, then extend it to others. They can proceed differentially according to the whims of the day....
Will the method be transferable to ice vehicles?
Easy to introduce the tax for one class of vehicles, then extend it to others. They can proceed differentially according to the whims of the day....
dxg said:
How will they determine the distance travelled? Cameras? The anti-tamper, RFID numberplates that we were all going to be getting a few years back?
Will the method be transferable to ice vehicles?
Easy to introduce the tax for one class of vehicles, then extend it to others. They can proceed differentially according to the whims of the day....
Sounds like an admin nightmare and the fewer car in the scheme the better from that perspective. ICE already pay tax via a well regulated system, why make it any more complicated? Unless you’re suggesting dropping fuel duty. Will the method be transferable to ice vehicles?
Easy to introduce the tax for one class of vehicles, then extend it to others. They can proceed differentially according to the whims of the day....
DMZ said:
Or how about just increasing the VED by £300 a year and save an enormity of hassle for all involved?
I suspect it will probably be done this way. I’m more annoyed about income tax bands being continuously frozen. Work hard so the government can take more of your hard earned cash from you
DMZ said:
Or how about just increasing the VED by £300 a year and save an enormity of hassle for all involved?
I asked a transport minister a similar question. The answer was that it had bad optics. Charging per km driven is new, and that makes it more acceptable.The plan was to also charge more at busy times, to ease congestion. Poor people should use public transport.
Kawasicki said:
DMZ said:
Or how about just increasing the VED by £300 a year and save an enormity of hassle for all involved?
I asked a transport minister a similar question. The answer was that it had bad optics. Charging per km driven is new, and that makes it more acceptable.The plan was to also charge more at busy times, to ease congestion. Poor people should use public transport.
You had to expect it, I think now there are more EVs in private hands too rather than just leased, it should be thus, you use the same roads, are heavier, take up as much space, and even without emissions are just a lesser environmental burden.
Interested to see how far they go, as weight for sure impacts road quality
Interested to see how far they go, as weight for sure impacts road quality
Kawasicki said:
DMZ said:
Or how about just increasing the VED by £300 a year and save an enormity of hassle for all involved?
I asked a transport minister a similar question. The answer was that it had bad optics. Charging per km driven is new, and that makes it more acceptable.The plan was to also charge more at busy times, to ease congestion. Poor people should use public transport.
The alternative of Having a box send details of every time you drive the car to the government doesn't sound like something that would go down very well!
Understatement of the year, I've had black boxes on works vehicles but on my own personal vehicles that's a big NO from me.
TBH a fixed rate for all cars regardless if propulsion type (EV ICE etc) would be much easier and cheaper to collect lets say £200-£300 per year.
Hopefully they will forget about motorbikes and just leave them alone.
Understatement of the year, I've had black boxes on works vehicles but on my own personal vehicles that's a big NO from me.
TBH a fixed rate for all cars regardless if propulsion type (EV ICE etc) would be much easier and cheaper to collect lets say £200-£300 per year.
Hopefully they will forget about motorbikes and just leave them alone.
Otispunkmeyer said:
Kawasicki said:
DMZ said:
Or how about just increasing the VED by £300 a year and save an enormity of hassle for all involved?
I asked a transport minister a similar question. The answer was that it had bad optics. Charging per km driven is new, and that makes it more acceptable.The plan was to also charge more at busy times, to ease congestion. Poor people should use public transport.
Mr E said:
By MOT is tricky for the first 3 years
Also interesting if the car is sold before between MOTs
By consent and accessing the cars APIs would seem to be the obvious for most devices, but required joined up thinking.
It's a stupid, ill thought out idea that is typical of Govts and especially this one.Also interesting if the car is sold before between MOTs
By consent and accessing the cars APIs would seem to be the obvious for most devices, but required joined up thinking.
Creating complication.
If they want road pricing, then just f
king do it. For everyone. Build the infrastructure ("invest") and get everyone.Scrap current VED. I have some sympathy with the weight thing noted above, so perhaps have a new tax on vehicle weight. Could be whacked onto purchase price if they want an "immediate" hit. After all, cars are unlikely to change weight during their lifetime. Maybe it would encourage better engineering of lighter weight cars too.
In NZ the km’s are supposed to be bought upfront before you use them and can be redeemed if you sell the car on before using them. I guess could fine people if not in credit of miles bought?.
Again in the first 3 years its done on honesty that law abiding citizens will follow the rules i guess. If someone is willing to cheat it you can but as always 90% of people with something to lose will follow the law.
Again in the first 3 years its done on honesty that law abiding citizens will follow the rules i guess. If someone is willing to cheat it you can but as always 90% of people with something to lose will follow the law.
Mr E said:
By MOT is tricky for the first 3 years
Also interesting if the car is sold before between MOTs
By consent and accessing the cars APIs would seem to be the obvious for most devices, but required joined up thinking.
Also interesting if the car is sold before between MOTs
By consent and accessing the cars APIs would seem to be the obvious for most devices, but required joined up thinking.
Gassing Station | EV and Alternative Fuels | Top of Page | What's New | My Stuff