The government is apparently considering a pay-per-mile road tax for EVs

The UK government is considering introducing a 3p per mile road tax for electric vehicles from 2028, according to reports.

Rumoured to be confirmed by chancellor Rachel Reeves in the upcoming November budget, the new levy is reportedly being considered to cover the shortfall in fuel duty as more drivers switch to EVs.

Drivers who, as newly enforced in April of this year, already face a charge of £195 per year, having previously been exempt from vehicle excise duty.

According to The Telegraph, EV drivers would be required to estimate and pay for their road usage for the year ahead. If they travel further, they will be required to pay the excess, but if they cover fewer miles, this will be carried over as credit for the following year.

The Society of Motor Manufacturers (SMMT) said: "We recognise the need for a new approach to motoring taxes but at such a pivotal moment in the UK’s EV transition, this would be entirely the wrong measure at the wrong time.

"Introducing such a complex, costly regime that targets the very vehicles manufacturers are challenged to sell would be a strategic mistake," it added.

AA president, Edmund King, added: “Whilst we acknowledge the Treasury is losing fuel duty revenue as drivers go electric, the Government has to tread carefully unless their actions slow down the transition to EVs.

"We need to see the detail of this proposal to ascertain whether these new taxes will be equitable or a poll tax on wheels," he added.

More as we have it.