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Proposed ECOS Tax Could Cost £500M, Threaten 5,000 Jobs

11/5/2025

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Summary

Story summary

The proposed tax on Employee Car Ownership Schemes (ECOS) could cost the Treasury £500 million in lost revenue and threaten 5,000 jobs.
The Society of Motor Manufacturers and Traders (SMMT) says the tax would reduce vehicle sales and harm the automotive sector, which has benefited from government support for electric vehicles.
The changes will take effect in October 2026, affecting about 76,000 employees who currently benefit from ECOS.

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Story summary

The proposed tax on Employee Car Ownership Schemes (ECOS) could cost the Treasury £500 million in lost revenue and threaten 5,000 jobs.
The Society of Motor Manufacturers and Traders (SMMT) says the tax would reduce vehicle sales and harm the automotive sector, which has benefited from government support for electric vehicles.
The changes will take effect in October 2026, affecting about 76,000 employees who currently benefit from ECOS.