{"id":415344,"date":"2026-02-08T23:10:20","date_gmt":"2026-02-08T23:10:20","guid":{"rendered":"https:\/\/www.newsbeep.com\/uk\/415344\/"},"modified":"2026-02-08T23:10:20","modified_gmt":"2026-02-08T23:10:20","slug":"rachel-reeves-confirms-new-300-charge-for-drivers-who-do-10000-miles-a-year","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/uk\/415344\/","title":{"rendered":"Rachel Reeves confirms new \u00a3300 charge for drivers who do 10,000 miles a year"},"content":{"rendered":"<p>Some drivers will see running costs surge by hundreds of pounds a year<img decoding=\"async\" alt=\"rachel reeves\" loading=\"eager\" src=\"https:\/\/www.newsbeep.com\/uk\/wp-content\/uploads\/2026\/02\/0_Chancellor-Rachel-Reeves-To-Be-Questioned-By-Treasury-Committee-On-Autumn-Budget.jpg\" \/><\/p>\n<p aria-label=\"Rachel Reeves has announced the new pay-per-mile tax.\" class=\"ImageCaption_caption-title__ccyQU\" data-testid=\"caption-title\">Rachel Reeves has announced the new pay-per-mile tax.(Image: Getty Images)<\/p>\n<p class=\"Paragraph_paragraph-text__PVKlh \" data-tmdatatrack=\"content-unit\" data-tmdatatrack-type=\"paragraph\">Ministers have set out further details of a new pay-per-mile car tax system set to be introduced in the UK.<\/p>\n<p class=\"Paragraph_paragraph-text__PVKlh \" data-tmdatatrack=\"content-unit\" data-tmdatatrack-type=\"paragraph\">The controversial new charge will apply to owners of electric vehicles (EVs) and plug-in hybrids.<\/p>\n<p class=\"Paragraph_paragraph-text__PVKlh \" data-tmdatatrack=\"content-unit\" data-tmdatatrack-type=\"paragraph\">Rachel Reeves and the Treasury are increasingly targeting EV owners as a way to raise more money.<\/p>\n<p class=\"Paragraph_paragraph-text__PVKlh \" data-tmdatatrack=\"content-unit\" data-tmdatatrack-type=\"paragraph\">READ MORE: <a aria-label=\"\" class=\"TextLink_text-link__dBSS0 TextLink_enabled__dJF3l\" href=\"https:\/\/www.birminghammail.co.uk\/news\/cost-of-living\/pip-claimants-getting-bumper-194-33381803\" rel=\"follow nofollow noopener\" tabindex=\"0\" target=\"_self\">PIP claimants getting bumper \u00a3194 payments<\/a><\/p>\n<p class=\"Paragraph_paragraph-text__PVKlh \" data-tmdatatrack=\"content-unit\" data-tmdatatrack-type=\"paragraph\">We are now on WhatsApp. Join our dedicated community <a aria-label=\"hereLink opens in a new tab.\" class=\"TextLink_text-link__dBSS0 TextLink_enabled__dJF3l\" href=\"https:\/\/chat.whatsapp.com\/HiSLU1pMS4WIRGDRbnDYAf\" rel=\"nofollow noopener\" tabindex=\"0\" target=\"_blank\">here<\/a><\/p>\n<p class=\"Paragraph_paragraph-text__PVKlh \" data-tmdatatrack=\"content-unit\" data-tmdatatrack-type=\"paragraph\">EV owners will be charged at a rate of 3p per mile, while for plug-in hybrids it will be 1.5p per mile.<\/p>\n<p class=\"Paragraph_paragraph-text__PVKlh \" data-tmdatatrack=\"content-unit\" data-tmdatatrack-type=\"paragraph\">Motorists will be charged based on how far they travel.<\/p>\n<p class=\"Paragraph_paragraph-text__PVKlh \" data-tmdatatrack=\"content-unit\" data-tmdatatrack-type=\"paragraph\">The 3p rate means someone doing 10,000 miles a year would have to pay \u00a3300.<\/p>\n<p class=\"Paragraph_paragraph-text__PVKlh \" data-tmdatatrack=\"content-unit\" data-tmdatatrack-type=\"paragraph\">The new tax will come into force in April 2028 and is in response to falling fuel duty revenue as more Brits switch to electric.<\/p>\n<p class=\"Paragraph_paragraph-text__PVKlh \" data-tmdatatrack=\"content-unit\" data-tmdatatrack-type=\"paragraph\">And it comes after EV drivers were forced to pay vehicle tax for the first time last year.<\/p>\n<p class=\"Paragraph_paragraph-text__PVKlh \" data-tmdatatrack=\"content-unit\" data-tmdatatrack-type=\"paragraph\">Treasury minister Dan Tomlinson outlined the Government&#8217;s plans saying: &#8220;At Autumn Budget 2025, the Government announced the introduction of Electric Vehicle Excise Duty (eVED), a new mileage charge for electric and plug-in hybrid cars, which will come into effect from April 2028.<\/p>\n<p class=\"Paragraph_paragraph-text__PVKlh \" data-tmdatatrack=\"content-unit\" data-tmdatatrack-type=\"paragraph\"><a aria-label=\"[object Object]Link opens in a new tab.\" class=\"TextLink_text-link__dBSS0 TextLink_enabled__dJF3l\" href=\"https:\/\/www.birminghammail.co.uk\/newsletter-preference-centre\/?view=Solus&amp;mailingListId=2e93e5e5-fc2a-4503-a444-967922eae47a&amp;utm_source=solusarticle\" rel=\"follow nofollow noopener\" tabindex=\"0\" target=\"_blank\">Get all the latest motoring news sent to your inbox by signing up to our newsletter here<\/a><\/p>\n<p class=\"Paragraph_paragraph-text__PVKlh \" data-tmdatatrack=\"content-unit\" data-tmdatatrack-type=\"paragraph\">&#8220;Drivers will pay for their mileage alongside their existing Vehicle Excise Duty (VED).&#8221;<\/p>\n<p class=\"Paragraph_paragraph-text__PVKlh \" data-tmdatatrack=\"content-unit\" data-tmdatatrack-type=\"paragraph\">In response to a question to Chancellor Rachel Reeves by independent MP James McMurdock, Mr Tomlinson also confirmed there were no current plans to change the structure of vehicle tax, Mirror <a aria-label=\"\" class=\"TextLink_text-link__dBSS0 TextLink_enabled__dJF3l\" href=\"https:\/\/www.mirror.co.uk\/money\/treasury-statement-over-road-tax-36676594\" rel=\"follow nofollow noopener\" tabindex=\"0\" target=\"_self\">reports<\/a>.<\/p>\n<p class=\"Paragraph_paragraph-text__PVKlh \" data-tmdatatrack=\"content-unit\" data-tmdatatrack-type=\"paragraph\">A consultation document on the new pay-per-mile charge states: &#8220;It will be set at half of the equivalent rate of fuel duty for electric cars, and half again for plug-in hybrid cars. eVED will ensure all car drivers contribute, but will still maintain important incentives to switch to an electric vehicle.<\/p>\n<p class=\"Paragraph_paragraph-text__PVKlh \" data-tmdatatrack=\"content-unit\" data-tmdatatrack-type=\"paragraph\">&#8220;eVED will not require &#8216;trackers&#8217; in cars, nor will the Government ask people to interact with a whole new tax system: car drivers will pay for the miles they drive alongside paying their usual road tax (VED).&#8221;<\/p>\n","protected":false},"excerpt":{"rendered":"Some drivers will see running costs surge by hundreds of pounds a year Rachel Reeves has announced the&hellip;\n","protected":false},"author":2,"featured_media":415345,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5],"tags":[84,10270,59,2053,6040,1445,56,54,55,2932],"class_list":{"0":"post-415344","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-business","8":"tag-business","9":"tag-dvla","10":"tag-gb","11":"tag-labour-party","12":"tag-motoring","13":"tag-rachel-reeves","14":"tag-uk","15":"tag-united-kingdom","16":"tag-unitedkingdom","17":"tag-your-money"},"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/posts\/415344","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/comments?post=415344"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/posts\/415344\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/media\/415345"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/media?parent=415344"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/categories?post=415344"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/tags?post=415344"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}