EV group Electric Vehicles UK (EVUK) has hit back at the Government’s “lack of forethought”, saying that the proposed pay-per-mile scheme is a risk to demand.

The Telegraph reported that the next Budget will include measures to tax EVs and hybrids by up to 3p per mile in addition to VED and road tax from 2028.

EVUK pointed out that despite UK registration figures rising to over a quarter of all new cars, the “lack of policy forethought” will ultimately risk demand, at exactly the time when there is a “need to drive it forward”.

Underlining the importance of joined-up policy, the organisation drew attention to the apparent contradiction of today the Government giving up to £3,750 for a new E, just to then recoup that grant through a pay-per-mile scheme.

A spokesman added: “And the mere speculation of a vague proposal like this sends mixed signals, unsettles the market, slows decisions and risks impacting the growth we need to keep building”.

EVUK ruefully noted that it would keep explaining to Government how “impactful their speculative ideas can be on the market”.

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