Rachel Reeves considering pay-per-mile tax for electric vehicles in budget

There are more than 1.3m electric cars on UK roads at present, according to the Society of Motor Manufacturers and Traders. Photograph: Murdo MacLeod/The Guardian

Rachel Reeves is considering using this month’s budget to announce plans for a pay-per-mile tax for electric vehicles worth an extra £250 a year on average.

The proposals could mean EV drivers pay a charge of 3p a mile on top of other road taxes to offset falling revenue from petrol and diesel cars as drivers switch to greener options.