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Labour Proposes Controversial 3p Per Mile EV Tax

11/6/2025

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Story summary
  • Labour plans a pay-per-mile tax on electric vehicle owners, to be announced in the Budget on November 26.
  • The levy would be 3p per mile and take effect from 2028.
  • The policy could cost EV drivers about £250 annually.
  • Critics, including Shadow Chancellor Sir Mel Stride, say it targets commuters and may give rural drivers extra "free" miles.
  • Officials warn of a potential £35 billion shortfall in government revenue.