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New EV Tax Threatens Adoption, Critics Warn

2/16/2026

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Story summary
  • The government will introduce a 3p-per-mile tax on electric cars in the south-west of England from 2028, nearly four times London's rate.
  • The tax aims to raise £1.1 billion yearly to offset declining fuel duty.
  • Critics warn it could slow EV adoption, especially in rural areas where drivers pay £156.51 annually.
  • The Office for Budget Responsibility estimates policy would reduce EV sales by 440,000 over five years.