Calls for Chancellor to introduce pay-as-you-drive charge on EVs

The Campaign for Better Transport (CBT) has called for the Chancellor to introduce a pay-as-you-drive charge on zero-emission vehicles.

The charity, which works across England and Wales to make transport “better, greener and fairer”, says revenue from fuel duty will decline by an estimated £5 billion a year by 2033 as the UK transitions from petrol and diesel vehicles to zero-emission technologies.

This easiest immediate solution to address this, says the organisation, would be a simple charge levied on ZEVs on a per-mile basis, while having an adequate transition period would enable industry to prepare.

Exempting existing ZEV drivers would incentivise uptake before the implementation date, it adds.

Fleets are already waiting to find out what will be in the “painful” Autumn Budget after the Prime Minister’s tax warning.

In a letter to Chancellor Rachel Reeves, Silviya Barrett, director of policy and research at CBT, wrote: “The new Chancellor faces a looming black hole. She can avoid it in a way which is fair and which garners broad public support.

“But she should start now, as this issue will only get more pressing.”