EV mileage tax, fuel duty: Motorists and the Budget

As the dust settles on Chancellor Rachel Reeves' Budget, motorists look set to experience a number of changes over the next few years.

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Here, we summarise the key talking points.

From April 2028, electric vehicles will be charged a new 'mileage tax' since the vehicles pay no fuel duty. From April 2028, drivers will be charged an equivalent of 3p per mile for battery electric cars and £0.015p per mile for plugin hybrids. The Chancellor says that this will go towards helping road maintenance.

That price will increase annually with the Consumer Price Index, adding an estimated £300 per 10,000 miles driven in an EV.