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Reeves set to unveil plan for EV drivers to pay per mile charges at Budget

Chancellor looks to offset a forecast sharp drop in government revenue from fuel duty

Chancellor Rachel Reeves is expected to unveil plans for per mile road charges for drivers of electric cars at the Budget, as she looks to offset a forecast sharp fall in fuel taxes, according to people familiar with the matter.

The plans could involve the introduction of road charges for EVs from 2028 following a public consultation, and could raise about £1.8bn a year for the Treasury by the early 2030s.

One proposal being looked at by the government would result in drivers of EVs facing charges of 3p per mile in addition to other road taxes.

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