Pay-Per-Mile Charge: Will Electric Vehicle Owners Feel the Pinch?
A potential game-changer for Britain's roads could be a small charge per mile, but the implications are complex. The UK government is expected to announce such a scheme in next week's budget, with Chancellor Rachel Reeves set to reveal details about how it will work.
The concept has been met with skepticism by some, including manufacturers and motoring groups, who fear that it could discourage people from switching to electric vehicles (EVs). EVs are already gaining popularity, but the charge could make them less attractive. The government is keen to encourage the adoption of cleaner transport options, but any new tax must be fair.
Currently, petrol cars pay a charge linked to their fuel consumption at the pump. But as more people switch to EVs, there's a growing need for alternative revenue streams. One possible solution is a pay-per-mile charge, which would apply to all drivers, regardless of whether they drive an electric or petrol car.
The idea has been tested in other countries. In New Zealand, where EVs are charged based on how many miles they're driven, sales have declined sharply since the change was introduced. However, Iceland's experience with a similar scheme suggests that it could be a more effective way to manage road use.
The Resolution Foundation thinktank recommends introducing a charge based on miles driven and weight for future EV sales as part of Vehicle Excise Duty (VED). Electric Vehicles UK agrees that motoring taxes need fundamental reform but insists the government must clearly communicate its intention to encourage people to switch to electric vehicles.
The question remains: will pay-per-mile raise money or drive people away from electric vehicles? The answer will depend on how it's implemented. If it's done correctly, it could be a key step in reducing our reliance on fossil fuels. But if it's not designed with care, it could have the opposite effect β driving away potential EV adopters and undermining the government's efforts to tackle climate change.
A potential game-changer for Britain's roads could be a small charge per mile, but the implications are complex. The UK government is expected to announce such a scheme in next week's budget, with Chancellor Rachel Reeves set to reveal details about how it will work.
The concept has been met with skepticism by some, including manufacturers and motoring groups, who fear that it could discourage people from switching to electric vehicles (EVs). EVs are already gaining popularity, but the charge could make them less attractive. The government is keen to encourage the adoption of cleaner transport options, but any new tax must be fair.
Currently, petrol cars pay a charge linked to their fuel consumption at the pump. But as more people switch to EVs, there's a growing need for alternative revenue streams. One possible solution is a pay-per-mile charge, which would apply to all drivers, regardless of whether they drive an electric or petrol car.
The idea has been tested in other countries. In New Zealand, where EVs are charged based on how many miles they're driven, sales have declined sharply since the change was introduced. However, Iceland's experience with a similar scheme suggests that it could be a more effective way to manage road use.
The Resolution Foundation thinktank recommends introducing a charge based on miles driven and weight for future EV sales as part of Vehicle Excise Duty (VED). Electric Vehicles UK agrees that motoring taxes need fundamental reform but insists the government must clearly communicate its intention to encourage people to switch to electric vehicles.
The question remains: will pay-per-mile raise money or drive people away from electric vehicles? The answer will depend on how it's implemented. If it's done correctly, it could be a key step in reducing our reliance on fossil fuels. But if it's not designed with care, it could have the opposite effect β driving away potential EV adopters and undermining the government's efforts to tackle climate change.