Car tax rises to £760 in April 2026 – Mondeo, Golf, Zafira being scrapped
Some older Ford Mondeos are being scrapped as drivers realise they’ll be paying £760 tax from April (Image:…
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Proposed pay‑per‑mile tax for electric vehicles raises concerns
The Chancellor is expected to outline plans in the upcoming Budget to introduce a mileage‑based tax for electric vehicles (EVs) from 2028. The measure is being considered as fuel duty revenues decline with more drivers moving away from petrol and diesel.
If introduced, EV drivers would pay around 3p per mile, with hybrid vehicles charged at a slightly lower rate. The proposal has not yet been confirmed and would require parliamentary approval before implementation.
Rising costs for electric drivers
Industry figures point out that electric drivers have already faced a series of cost increases in recent years, including higher insurance premiums, the introduction of Vehicle Excise Duty (VED), and rising home charging costs.
Motoring analyst John Wilmot, founder of LeaseLoco, said the proposed tax risks undermining one of the main incentives for switching to electric.
“One of the massive benefits to driving an electric vehicle was that it was far cheaper to run than a petrol or diesel car, but a pay‑per‑mile tax risks eliminating that advantage,” he said.
“It’s almost sending mixed messages. We want people to switch to electric cars but they’re dealing with limited charging infrastructure and other rising costs which can leave them questioning whether it’s even worth it.”
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Net zero implications
Wilmot warned that the proposal could slow progress towards the government’s net zero goals.
“Lower running costs were a huge part of the incentive for going electric. Taking that away risks stalling the momentum we have built by giving people confidence in electric vehicles,” he said.
He added that many drivers are already expressing interest in electric options, but uncertainty over future costs may cause hesitation.
“Drivers want clarity before committing to making the switch to electric and it’s hard to have confidence when the rules and the costs keep changing.”
What it means locally
South Wales has seen a steady rise in EV ownership, supported by council‑backed charging points and private investment. Campaigners say any policy that reduces incentives could affect uptake in the region, where charging infrastructure is still developing.
#budget #electricCar #electricVehicles #ev #fuelDuty #hybridCar #motoring #payPerMile #roadTax #vehicleExciseDuty
Just over a week left for EV drivers to save £200 in tax loophole
With Vehicle Excise Duty (VED) rules set to change this April, motoring experts are urging EV drivers to renew their car tax before 1st April to benefit from an additional year without charges.
Until now, electric car owners have been exempt from VED. However, under new legislation, they will have to pay an annual standard rate of £195 from April 2025 – the same as drivers of recent petrol and diesel vehicles.
But savvy drivers can still take advantage of the current VED exemption for fully electric cars by renewing their car tax early at no cost before 1 April.
Motorists can renew their car tax in any month, regardless of when it is due to expire. EV drivers who do so by 31 March won’t incur any extra charges, even if their current tax period still has months left.
By re-taxing their EV online before 1 April – using the car’s registration number and reference number from the V5C logbook – drivers can secure tax-free motoring until March 2026, saving them £195 under the new standard rate.
Under the new legislation, buyers of new EVs will pay £10 in first-year showroom VED. From the second year onwards, they will be charged the same standard VED rate as petrol and diesel cars.
John Wilmot, CEO and founder of car leasing deals site LeaseLoco.com said: “While the introduction of VED for electric cars was expected, many drivers may not realise they can in fact delay these charges for another year by renewing their tax before 1 April.
“Taking advantage of this short window to secure another year of tax-free driving is a no-brainer. It’s a simple step that could save you nearly £200, and with the deadline fast approaching, we’d encourage drivers to act now.
“Free road tax was a key incentive for EV adoption, helping offset the higher upfront costs of electric vehicles. Now, this policy shift risks slowing the transition to cleaner transport, particularly for those considering an EV as their next vehicle. While EVs are still cheaper to run than petrol cars, the removal of this benefit reduces the financial appeal, which could undermine the government’s net zero ambitions.
“However, it was only a matter of time before road tax was adjusted. The system was originally designed when EVs were a niche market, but with more electric cars on the road, the government will certainly be seeing a loss in tax revenue.
“While it’s fair that all road users should contribute, there’s an argument that this change could have been introduced more gradually or offset by additional incentives, such as improved charging infrastructure or purchase grants, to keep EVs attractive to consumers.”
Electric Vehicle owners will now need to pay #VehicleExciseDuty (sometimes incorrectly termed "Road Tax" and on the BBC incorrectly called "Car Tax").
The RAC have said it's "probably fair" that #EV owners should "contribute to the upkeep of roads" although of course roads are maintained with funds from general taxation so everybody already pays.
EVs do cause damage to the roads although maybe this is a nudge in the wrong direction.
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