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Rumour and myth are now afoot with a new budget due from Rachel Reeves, the Chancellor for the UK. In a report by the Telegraph there is suggestion that a pay per mile scheme could be introduced to help recoup some of the losses being incurred due to the rise in electrification of our transport.
Sir John Armitt claims that a taxation on mileage would balance the loss of fuel duty, which is integral to funding critical infrastructure like our motorways. Reported further in the BBC, there are also assertions that EV drivers will incur up to 3 pence per mile tax, with drivers having to estimate annual mileage and pay yearly for anticipated road use or with annual MOTs to be used to officially record the miles covered.
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With £30 per 1000 miles being suggested, this could be one way the UK Government could generate nearly £2 billion per annum.
With the Government now looking 10 years ahead in the national infrastructure survey, there needs to be a firm grip on budgets and project completion, including the various tax and levies being placed on transport using that system. At present, these are very much speculation and ideas being propagated through various press and media.
As you would envisage there have been a swathe of opinions and responses to a suggestion on an EV tax. For pro-EV campaigners there are some immediate and clear concerns. With uptake still holding around 25% in the new car world, the rate of zero-emission registrations is still holding well below the anticipated 80% figure of 2030.

With much to achieve, like further rapid charge points at key destinations, charging infrastructure for those without off-road parking, stability for used-EVs and educational improvements in the BEV sector as a whole, the prospect of an adverse tax does bring about concern.
On the flip-side, other commenters have taken a more pragmatic viewpoint, suggesting that some EV drivers are already benefitting from wonderful advantages like low company car tax, cheaper electricity costs (and overnight tariffs) and Electric Car Grants. In the Guardian, a more aggressive stance suggests that car salesmen need to "get real" and understand the rational economics of the EV transition.
To play more of a devil's advocate role, there are clearly concerns to all of us selling / leasing new and used EVs with anything remotely adverse. We have had to overcome a litany of critique, with much of it based on poor facts - this has included elements relating to range, charging times, charging costs, vehicle safety / security and performance.

In many cases, poor or misleading information has been used to generate unnecessary fear and concern surrounding life in battery vehicles. While 2025 has proved to kick much of this into the side-lines, there are still some hurdles and reticence with the 75% or so who are yet to take the plunge. Introducing “taxes” on all EVs could be the wrong message and be a kicker to those customers sat on the fence.
This is somewhat more pertinent with personal / retail customers who are considering the move into a new or used EV. The prospect of cheaper fuel and running costs are great but if they balance this out with a notional fuel duty will it put them off? Will it make potential drivers distrust the government on what could happen next i.e. more seismic and punitive charges?
Our suggestion - apply a tax on mileage to company car and salary sacrifice customers first, if this is the purported route. Both of these entities do enjoy considerable tax benefits, especially in the sal sac world. The latter are nothing more than retail / consumers enjoying significant tax benefits which others cannot always enjoy as their employer doesn’t / cannot offer.
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Because of this, salary sacrifice customers could stomach the impact and still be financially better off than if they went into a personal contract hire or contract purchase arrangement.
Hoping to benefit from some positive arrangements is the new Alpine A390, a 5-seater sports fastback. The elegant and dynamic sports car is designed to be like no other. The torque vectoring delivers cornering precision, the three e-motors work intelligently to deliver performance and pleasure while offering that French refinement and expert craftsmanship. Expected in March 2026, you can pre-order one of the specifications below on the Alpine website:
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The Colours include Bleu Alpine Vision, Gris Tonnerre Mat, Blanc Topaze, Argent Mercure, Bleu Abysse and Noir Profond.
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Head to our dedicated Alpine special lease offers section or speak to our experts directly on 01942 910 001 or by emailing us at [email protected]
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