Chancellor Rachel Reeves has confirmed a new Electric Vehicle Excise Duty scheme with battery electric car owners paying three pence per mile in addition to the standard rates of Vehicle Excise Duty, while owners of plug-in hybrid cars will pay 1.5 pence per mile. The new scheme is expected to come into effect in April 2028.
According to the OBR it could raise as much as £1.4bn, helping to plug the gap left by falling fuel-duty receipts.
