Drivers in rural areas of the UK, particularly in the south-west, will face significantly higher costs under a new mileage-based tax on electric vehicles compared to their urban counterparts in London.
A new analysis reveals that the UK’s planned 3p-a-mile road charge on electric vehicles, set to be implemented in 2028, will disproportionately impact rural drivers, particularly those in the south-west of England. According to the findings, drivers in these areas could see annual costs soar by nearly four times the amount of their counterparts in London, highlighting a stark regional disparity in tax burdens. The implementation of this mileage tax is part of the government's broader strategy to replace lost fuel duty revenues as the population shifts from petrol to electric vehicles.
The new tax, which is anticipated to generate £1.1 billion annually, has raised concerns among critics who argue that it may hinder the uptake of electric vehicles in rural communities. These areas are already grappling with limited charging infrastructure and higher travel costs, and the additional tax burden risks exacerbating these challenges. With the government promoting electric vehicles as a cleaner alternative, there is a growing worry that this tax will discourage potential users, particularly in regions that depend heavily on car travel.
In contrast, urban areas, especially London, will bear a much lighter financial burden, where drivers are projected to pay only £33.09 extra per year. Given London’s higher density of electric vehicles and charging points, this tax structure may inadvertently favor urban residents while imposing hardships on rural drivers. Such disparities raise important questions about equity in transport policy and the overall effectiveness of measures aimed at promoting electric vehicle adoption across different regions of the UK.
