{"id":439702,"date":"2026-02-22T14:03:10","date_gmt":"2026-02-22T14:03:10","guid":{"rendered":"https:\/\/www.newsbeep.com\/uk\/439702\/"},"modified":"2026-02-22T14:03:10","modified_gmt":"2026-02-22T14:03:10","slug":"rachel-reeves-is-upsetting-everybody-with-300-car-tax-change-now-shes-got-a-new-enemy","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/uk\/439702\/","title":{"rendered":"Rachel Reeves is upsetting everybody with \u00a3300 car tax change – now she’s got a new enemy"},"content":{"rendered":"

Rachel Reeves<\/a> has finally upset everyone. Drivers, manufacturers and the car industry have already turned their axe at the Chancellor over her latest EV tax fantasy.\u00a0But if that wasn\u2019t enough, Labour<\/a> now has a new enemy who is just as furious over her 3p per mile electric vehicle<\/a> charge as everyone else. Now the UK\u2019s car dealers are getting ready to wield the axe.\u00a0<\/p>\n

The maths alone paints a frightening picture, with motorists travelling an average of 10,000 miles per year set to splash out \u00a3300 per year on the Government\u2019s electric Vehicle Excise Duty (eVED)<\/a> fees on launch. The staggering fees have guaranteed that Labour\u2019s latest cash grab has been highly controversial, and it\u2019s not even here yet, instead pencilled in for a 2028 launch.<\/p>\n

The Society of Motor Manufacturers and Traders (SMMT)<\/a> started it off, calling the policy the \u201cwrong measure at the wrong time\u201d, with polls indicating that drivers are still on the fence around the thought of extra tax hikes. But car dealers are now fighting back, pointing out that raising taxes and charging more isn\u2019t the best way to boost interest in expensive EVs most already can\u2019t afford.<\/p>\n

Yes, the fees are being introduced to offset the loss of fuel duty, but tax incentives were a major benefit of going electric, and with no real motivation for customers, what is the point? Estimates from the Office for Budget Responsibility (OBR) predicted Reeves\u2019 new 3p per mile plan could lead to around 440,000 fewer electric car sales.<\/a> Labour obviously doesn\u2019t care about this because they are pressing ahead with the plan anyway, is Reeves’ simply not listening?<\/p>\n

Speaking exclusively to Express.co.uk, Robert Forrester, chief executive of Vertu Motors<\/a>, called out Reeves\u2019 for introducing an \u201cill thought-out policy\u201d that is likely to open a \u201ccan of worms\u201d. He went on to explain that increasing tax would clearly \u201creduce demand\u201d and called a lack of demand a simple \u201ceconomic fact\u201d. If only the Chancellor understood this, eh?<\/p>\n

He isn\u2019t the only one to call out the new fees, with dealerships and car finance firms across the UK now sharpening their knives in an industry-wide rebuke at one of Labour\u2019s flagship motoring policies.<\/p>\n

Close Brothers Motor Finance<\/a> told Express.co.uk that introducing a tax on EVs \u201cadds an unnecessary barrier to prospective car buyers\u201d before suggesting that the dip in interest is likely to be seen at forecourts sooner rather than later.<\/p>\n

Indigo Car Hire<\/a> was next, telling Express.co.uk that the move was likely to \u201cdiscourage people from buying electric\u201d with \u201cuncertainty\u201d around the rule likely to put off potential buyers.<\/p>\n

EV sales are already massively down on the Government’s self-mandated net-zero targets<\/a> and slapping extra bills on drivers isn\u2019t going to help. The 3p per mile charge is the perfect excuse for drivers to think twice before signing on the dotted line, with many likely to reason that the added cost isn\u2019t worth the huge investment.<\/p>\n

If demand falls and motorists turn their backs on EVs, what happens to dealers selling these cars? They can’t pay their bills from nothing and that\u2019s where the anger stems from. Rachel Reeves<\/a> has done it again. Another tax hike, another set of angry Britons, this time she may have gone too far.<\/p>\n","protected":false},"excerpt":{"rendered":"Rachel Reeves has finally upset everyone. Drivers, manufacturers and the car industry have already turned their axe at…\n","protected":false},"author":2,"featured_media":439703,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5],"tags":[84,685,160097,93151,160098,160099,59,119089,1445,160100,56,54,55,680],"class_list":["post-439702","post","type-post","status-publish","format-standard","has-post-thumbnail","category-business","tag-business","tag-car-tax-changes","tag-car-tax-pay-per-mile","tag-electric-car-tax","tag-electric-vehicle-excise-duty","tag-eved","tag-gb","tag-pay-per-mile","tag-rachel-reeves","tag-road-tax","tag-uk","tag-united-kingdom","tag-unitedkingdom","tag-vehicle-excise-duty-ved"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/posts\/439702","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=439702"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/posts\/439702\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/media\/439703"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/media?parent=439702"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/categories?post=439702"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/tags?post=439702"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}