Rachel Reeves’ latest car tax policy could have a massive impact on one group of road users, according to experts. Ginny Buckley, chief executive of Electrifying.com, has warned that motorists living in the countryside are set to be most affected by the Chancellor’s new pay-per-mile charge.
Labour has already confirmed that a 3p per mile fee will come into effect for electric car owners from 2028, with hybrid vehicles paying 1.5p per mile to use the roads. The new rule means motorists will be charged for every mile they drive, with those using the road more hit with higher costs.
However, Ginny has stressed that those living in rural areas rely on their cars to reach the nearest city and do not have access to a plethora of public transport options. It means “millions” could be caught out by the new rule and leave many to ditch electric cars for fear of being unfairly penalised.
Speaking exclusively to Express.co.uk, Ginny said: “Pay-per-mile taxation might sound fair to those in Government, but for millions of drivers it will feel like yet another tax on everyday life.
“If you live in a rural area, driving isn’t a lifestyle choice; it’s a necessity, so there’s a real danger this creates an EV postcode penalty where the people with the fewest transport alternatives end up paying the most. The warning signs to Whitehall to think about this policy are already there. This risks creating another barrier to switching.”
The Electric Car Scheme has warned that rural communities face the highest projected annual costs under a pay-per-mile scheme. They stressed that those living in the countryside would be paying an average of £156 per year compared to £76 for urban drivers.
The experts claimed that a flat rate per mile does not account for the “structural differences” around how people use their cars and highlights the importance of ensuring that new charges are designed with both regional and rural drivers in mind.
Previous research from Electrifying.com, in partnership with the AA, found the majority would reconsider electric cars if the charge came into effect.