Design of EV road pricing scheme needs careful consideration

BUDGET 2025: Clear communication can sell pay-per-mile charge, Richard Sallnow of PA Consulting

Today’s Budget forces us to face a simple reality: fuel duty faces a cliff edge, and without a refresh of road taxation we’re heading towards a multibillion-pound black hole in transport funding. 

Moving to a pay-per-mile system for electric vehicles is an inevitable step, but its design and implementation needs careful consideration for a smooth journey ahead.

This shouldn’t be seen as a radical shift – internal combustion engines already pay a per mile charge of sorts through fuel duty. This latest announcement is an extension of that same principle for zero-emission vehicles.

The quickest, fairest way to start is a simple mileage-based charge for zero-emission vehicles, verified through annual mileage readings. It gets the system running fast without intrusive surveillance or costly technology.

There will be questions from the public about how this policy will work, but that shouldn’t slow progress. Clear communication and transitional measures – such as free annual miles or phased charges – can help maintain confidence while keeping the shift to EVs on track.

Implementation will take years, but now is the time for decisive action. 

By working with clarity and conviction, the government can deliver a road pricing system that people understand, trust, support and rely on.

Richard Sallnow is transport expert at PA Consulting