Electric Vehicles: Excise Duties
The question
To ask the Chancellor of the Exchequer, pursuant to the Answer of 19 March 2026 to Question 120278 on Electric Vehicles: Costs, whether she will publish the analysis underpinning the estimated monthly cost savings under the proposed Government’s proposed electric Vehicle Excise Duty.
Answered by Dan Tomlinson
In answer to Question 120278 the Government set out that analysis suggests that the average EV driver will pay around £20 a month under the Government’s eVED proposals once the new policy starts in 2028, roughly half the equivalent rate for a petrol car.
This is based on an average EV driving 8,000 miles per year subject to an eVED rate of three pence per mile. The average EV driver will therefore pay £240 - or £20 per month - in eVED, while an average petrol/diesel car driving the same distance will pay around £480 in fuel duty, or six pence per mile.
The Government has set out expected impacts from eVED and other Budget measures in the Budget 2025 Policy Costings document at GOV.UK: https://assets.publishing.service.gov.uk/media/692872fd2a37784b16ecf676/Budget_2025-Policy_Costings.pdf
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