It has been confirmed that the new Prime Minister, Andy Burnham, will plough ahead with the charges, alongside Chancellor John Healey.
Drivers are set to pay 3p per mile to use the road as part of a major rule change set to be introduced by the Labour Party government.
EV and hybrid owners will be charged for each mile they travel under a shake-up first announced by former Labour Party Chancellor Rachel Reeves.
HMRC has previously predicted that the measure is expected to impact around 5.6million vehicles over the 2028/29 financial year. The Department for Transport said: “From 1 April 2028, eVED a new mileage-based charge will apply to BEVs, PHEVs, and HFCEVs that are cars. The rates of tax will be 3 pence per mile for BEVs and HFCEVs or 1.5 pence per mile for PHEVs.”
Despite the charge being first confirmed by Ms Reeves, it has been confirmed that the new Prime Minister, Andy Burnham, will plough ahead with the charges, alongside Chancellor John Healey.
The rate will be uprated in 2029 to 2030, and in future years, in line with Consumer Prices Inflation (CPI), to ensure that the tax maintains its real-terms value.
For the purposes of renewing their eVED alongside their VED and to calculate how much eVED to pay, drivers will provide an odometer (mileage) reading from their car or estimate their mileage for the forthcoming tax period (typically a year).
VED is administered by Driver and Vehicle Licensing Agency (DVLA). They will also administer eVED.
Motorists will pay an upfront charge based on their estimate or spread their payment across the year, with the year-end mileage reading triggering a reconciliation. Mileage data from cars is currently collected at annual MOTs and is available to view for most cars on GOV.UK.
Where applicable, the government intends to use this data to ensure that user-supplied mileage is consistent and up to date. This means if a car is already subject to an MOT, there will typically be no additional steps for checks.
All vehicles contribute to congestion and wear and tear on the roads, but drivers of petrol and diesel vehicles pay fuel duty at the pump to contribute their fair share. However, drivers of electric vehicles do not currently pay an equivalent.
As more people choose to switch to cleaner, greener electric cars, the Office for Budget Responsibility (OBR) has forecast fuel duty receipts will decline. eVED is intended to help replace lost fuel duty revenue from cars over the long term so, like fuel duty, the amount motorists pay will vary based on the amount they drive.
James Rodger Content
