A plot twist worthy of a drama series has hit the UK’s electric vehicle market. The government has announced a massive £1.3 billion boost to EV incentives… while simultaneously confirming a per-mile tax starting in 2028. Yes — incentives with one hand, taxation with the other.
The Sweet Part: More Incentives
At the moment, EVs priced up to £37,000 receive up to £3,750 in support. With the new funding, incentives will expand, charging stations will multiply, and corporate EV fleets will get extra perks.
Sounds fantastic… right?
Then Comes the Sting
From 2028 onward, the Electric Vehicle Excise Duty (eVED) kicks in. EV owners will face an average annual increase of £276.
Rates:
— 3 pence per mile for EVs
— 1.5 pence per mile for plug-in hybrids
Drive more, pay more.
Government revenue predictions?
£1.1 billion by 2028.
Nearly £2 billion by 2030.
The Official Justification?
“All vehicles contribute to road wear, so a small per-mile tax is fair.”
Small?
Debatable.
Bottom line: the UK is giving EV owners both a carrot and a stick. Come 2028, the electric vehicle landscape will never be the same.