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Jagannadha Pawan Tamvada, Professor of Entrepreneurship, Kingston University

What will 2026 look like for the UK’s electric vehicle market?

Vivid Brands/Shutterstock

In the UK, as in many other countries, the shift towards electric vehicles (EVs) has been rapid. Incentives, increased choice and some positive PR took the electric car sales to nearly 500,000 vehicles in 2025 – around 24% of the market. But the government’s budget in late November, which outlined new charges for EV owners, may have slammed the brakes on this momentum.

Chancellor Rachel Reeves revealed that EV owners will face a new 3p-per-mile road charge from April 2028, marking a significant shift in how the government taxes cleaner forms of transport. The owners of plug-in hybrids will pay 1.5p per mile. These new levies will apply alongside other motoring taxes that EVs are also now required to pay.

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