Response to the Consultation on the Introduction of Electric Vehicle Excise Duty (eVED)
In the Chancellor’s 2025 Budget, the UK government announced plans to introduce electric Vehicle Excise Duty (eVED) from April 2028 as a mileage‑based charge on battery electric and plug‑in hybrid cars, set at 3p and 1.5p per mile respectively, roughly half the fuel duty equivalent paid by petrol and diesel drivers.
The aim of the policy is to protect Government revenue as fuel duty receipts fall, while still keeping a financial incentive to switch to EVs. The proposals aim to integrate payments into the existing DVLA VED system through odometer readings.
In its response to the Treasury’s consultation on eVED, ITS UK welcomes the principle of introducing VED on EVs to maintain Government revenue, but argues that the current scheme design is a missed opportunity to move straight to a smarter, technology‑enabled national road pricing scheme.
