The 3p per mile charge for electric vehicles (EVs), included in the Autum 2025 Budget is set to start from April 2028.

From then, EV drivers will pay an electric vehicle excise duty (eVED) alongside their existing road tax, with the mileage charge payable each year, at 3p per mile and 1.5p for plug in hybrids.

Budget costings stated the charge will bring in £1.2bn in its first year, £1.6bn in 2029-30, eventually reaching £2.1bn in 2030-31.

However, rolling out eVED in 2028 could cost the economy up to £4.8bn, according to research from BEAMA, the energy infrastructure trade association.

In a letter to Treasury minister Dan Tomlinson, Matt Adams, head of electrical transport at BEAMA stated: ‘This cost would exceed the total revenue the new tax policy is forecast to raise by 2031’.

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