ITS UK welcomes confirmation of opt-in technology for ‘pay per mile’ eVED, but urges review of location-based options

15 July 2026: Intelligent Transport Systems UK (ITS UK), the industry association for transport technology, has welcomed the Government’s commitment to develop an opt-in technology solution to support motorists in reporting mileage for Electric Vehicle Excise Duty (eVED), but urged the Government to consider voluntary location-based options too.

ITS UK has consistently called for road pricing to sustain public finances as fuel duty declines, advocating in particular for the inclusion of opt-in technology options for future road pricing schemes. Throughout the consultation process, the association has argued that telematics and connected vehicle technology could reduce administrative burdens on motorists and businesses, improve the accuracy of mileage reporting, and minimise the risk of fraud from simple odometer readings.

ITS UK has, however, highlighted the Government’s response as a missed opportunity to offer voluntary location-based charging options, which could have provided policymakers with greater flexibility to manage the road network, and solve issues around drivers travelling overseas in UK-registered vehicles.

Max Sugarman, Chief Executive of ITS UK, said: “The Government’s response to the eVED consultation is positive, in terms of confirming that an opt-in technology solution will be needed. This is something ITS UK has consistently advocated for – it is not a ‘nice-to-have’, but an essential part of ensuring eVED works, that it is simple and easy to use, and that it particularly supports road users who need certainty about what they’ll be paying.

“However, the Government is insisting it will not offer the option of a location-based charging model from the beginning. This is a missed opportunity – it means transport authorities will have fewer levers to manage their networks and that drivers travelling overseas in UK-registered vehicles will still have to pay eVED. The industry appreciates some drivers may have privacy concerns, but an optional scheme would allow those who want the benefits location-based technology can provide to opt-in if they wish. We strongly urge the Government to reconsider its position on this area.”

Notes to Editors

  1. Read ITS UK’s response to the consultation here.
  2. Read HM Treasury’s response to the consultation here.
  3. About ITS UK: Intelligent Transport Systems UK (ITS UK) is the voice of the transport technology industry, a sector that provides £3.2bn in economic value, supports 45,000 jobs and provides £500mn in tax revenue. ITS UK provides a national platform to support the roll-out of technology for a cleaner, safer and more effective transport network, both at home and abroad. We support our 200+ members – from both the private and public sector, and covering all sizes and disciplines – through advocacy to policymakers, connecting people and organisations, promoting the industry overseas and supporting innovation across the intelligent transport ecosystem. www.its-uk.org