Britain’s electric and plug-in hybrid vehicle owners will be subject to a pay-per-mile tax, under UK budget measures tipped to dent demand at a time when carmakers must meet an EV sales mandate.
The move, from April 2028, will raise £1.4 billion ($1.8 billion) a year by the end of the decade, according to a budget assessment published by the Office for Budget Responsibility. EV owners will pay a charge of 3 pence per mile, while plug-in hybrid car drivers will pay 1.5 pence per mile.
The watchdog estimated the change will lead to 440,000 fewer electric car sales in ...