🚗💸 Big changes could be on the horizon for UK drivers! Rachel Reeves, the Chancellor, is considering a new pay-per-mile tax aimed at electric vehicles (EVs). This policy could be part of the upcoming budget announcement and might set drivers back 3p per mile, averaging £250 annually!
The news comes as the Treasury seeks to recover revenue from declining fuel duties, since more drivers are swapping petrol and diesel for EVs. 🚙⚡ The government currently garners about £25 billion annually from fuel duty, but with a shift to electric, a new system is needed.
Here’s how the pay-per-mile fee may impact your trips:
– London to Edinburgh: £12
– Cambridge to Bristol: £5
– Liverpool to Leeds: £2
Critics are worried this tax could discourage the switch to greener vehicles. Industry voice Edmund King calls for careful consideration, urging the government to weigh the tax’s impact on the EV transition. Meanwhile, organisations like the Society of Motor Manufacturers and Traders warn that this move might complicate the EV market and send mixed messages to consumers.
On the flip side, the government argues that as EVs grow in popularity, a fairer tax system is essential to maintain roads and services. They’ve already invested £4 billion to support the switch, offering grants up to £3,750 for eligible vehicles.
Opinions are mixed, with some calling for a balanced approach to encourage EV adoption without burdening drivers. So, will this new tax roadblock the EV momentum or shape a fairer driving future? Share your thoughts! 🤔💡 #EVTax #GreenDriving #RoadPricing