EVolution is a news, intelligence and analysis service dedicated to the emerging business of supporting electric and hydrogen-fuelled vehicles.

Government is sending mixed signals on EVs

BUDGET 2025: The Energy & Climate Intelligence Unit’s Colin Walker says pay-per-mile tax could confuse consumers

Colin Walker
26 November 2025
Colin Walker
Colin Walker

 

Trying to encourage people to embrace electric vehicles whilst adding a new tax on those vehicles is a recipe for confusion.

The Office for Budgetary Responsibility (OBR) forecasts that this tax will reduce EV sales by 440,000 as mixed messaging hits consumer confidence, keeping families

in more polluting and expensive petrol cars for longer.?While these mixed signals are a big risk, this 3p per mile charge will not stop EVs remaining significantly cheaper to run than petrol cars, delivering...

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