Pay per mile. Another blow for EV drivers

[salty]

Not sure how this will justify going back to petrol; nevermind PHEVs.

Not many will go back. I certainly won't be. But it'll make someone's decision when buying a 1st EV. A bit harder. Should I or shouldn't I. What the Hell are they gonna come up with next. Coz I'm pretty sure, they ain't finished yet.

 

[tsedge]

I would say few people will be confident of no changes until the election in 2029 based on this government's past behaviour.

Off topic: Probably more consequential than this is the further squeeze on landlords today, expect renting to become more expensive and harder to find a property.

 

[GaryMG4]

I think today's budget was an invitation by the Labour Party NOT TO VOTE FOR US at the next election as they are (or should be) aware they have not a chance of getting in next election.

I think they started that last year when their first act (after showing they could be as corrupt as the tories, giving jobs to their mates) was the vindictive attack on those that tend not to vote labour, pensioners and farmers.

 

[NikLiverpool]

IF they go ahead with raising the duty: it will be bad politics so the (fuel) can may be kicked down the road again next year.

But apparently they decided on this already:

''The Chancellor has confirmed that fuel duty will remain frozen, but only until September 2026.

After this point, the five pence cut first brought in back in 2022 will be reversed in a “staggered approach”. From April 2027, fuel duty will be increased in line with the Retail Prices Index (RPI).''

This is surely closer timewise than the EV per mile tax (2028).

 

[tsedge]

It does seem like they have gone out of the way to annoy almost everyone: eg why can't I any longer save £20,000 cash / year in an ISA but an over-65 person can? You'd have thought it would be the other way around to encourage oldies to spend their pots!

 

[tsedge]

But apparently they decided on this already:

''The Chancellor has confirmed that fuel duty will remain frozen, but only until September 2026.

After this point, the five pence cut first brought in back in 2022 will be reversed in a “staggered approach”. From April 2027, fuel duty will be increased in line with the Retail Prices Index (RPI).''

This is surely closer timewise than the EV per mile tax (2028).

Yes, but don't forget fuel duty was frozen something like 5 years in a row recently, due to political pressure.

Just because they've announced it, doesn't mean it will happen. Price of fuel is known to be a huge political flash point, price of EVs/their running costs are not. Also if oil prices surge, they could delay it.

 

[GaryMG4]

It does seem like they have gone out of the way to annoy almost everyone: eg why can't I any longer save £20,000 cash / year in an ISA but an over-65 person can? You'd have thought it would be the other way around to encourage oldies to spend they pots!

As an oldie I'd love to have a spare £20k to save each year, that said I know where my current premium bond money is going next year, I won't be lending the government any more money at a cheap rate.

 

[NikLiverpool]

Yes, but don't forget fuel duty was frozen something like 5 years in a row recently, due to political pressure.

Just because they've announced it, doesn't mean it will happen. Price of fuel is known to be a huge political flash point, price of EVs/their running costs are not. Also if oil prices surge, they could delay it.

We could argue the same for the per mile tax for EVs; considering the starting date of 2028 and the complexity that will impose on recording the actual mileage while the fuel duty is easy to implement.
At this point I would consider both up in the air.

I reckon that once the market of EVs reaches a critical point of EVs being out on the road they will scrap the fuel duty completely and implement a per mile tax across all vehicles.

 

[Miles Roberts CG]

I've posted a link to the consultation in my thread in the General forum.

Thanks, I've just read through it now.

So when my car is taxed (on registration, if new, or on change of ownership if used, or annually if existing car), I'll have to estimate my annual mileage (18k miles), and pay £540 at the start of the year (in addition to the £195 VED). If after the first year (mileage checked by servicing garage or MoT station and reported back to DVLA) I've done more or less miles than guessed, then I need to pay extra, or if I've overpaid it can be used as a credit for the next year of motoring.

The awkward bit will be when we have courtesy cars / demonstrators, as we'll have to pay up front for a year's worth of mileage, but we usually only keep the cars for 6 months before selling... So unsure how they'll account for varying the annual mileage mid-term with a change of ownership.

 

[NikLiverpool]

It does seem like they have gone out of the way to annoy almost everyone: eg why can't I any longer save £20,000 cash / year in an ISA but an over-65 person can? You'd have thought it would be the other way around to encourage oldies to spend their pots!

I wish I could save 20k per year in my ISA; and for the average person there are ways around this. Normal Isa, stocks Isa, partner's Isa, kids etc.
In my case I could in theory have 8 ISAs (including wife and kids). I am not sure going from a theoretical £160k per year to 96k will make much difference since in reality I couldn't save half of this.

This is purely for people with enough money on the side to invest instead of stockpile in ISAs. I am not dead against it.

 

[tsedge]

Fair enough, you could be right.

Not sure about a per mile tax without separate duty: it penalises people in rural areas. I expect they will persist with both elements.

 

[tsedge]

Thanks, I've just read through it now.

So when my car is taxed (on registration, if new, or on change of ownership if used, or annually if existing car), I'll have to estimate my annual mileage (18k miles), and pay £540 at the start of the year (in addition to the £195 VED). If after the first year (mileage checked by servicing garage or MoT station and reported back to DVLA) I've done more or less miles than guessed, then I need to pay extra, or if I've overpaid it can be used as a credit for the next year of motoring.

Yes, that's the plan

The awkward bit will be when we have courtesy cars / demonstrators, as we'll have to pay up front for a year's worth of mileage, but we usually only keep the cars for 6 months before selling... So unsure how they'll account for varying the annual mileage mid-term with a change of ownership.

In the section on special life events, they talk about being able to adjust or pay the mileage mid-year for exceptional events. My guess is that dealers will be able to do this, so they can get the money back early.

Otherwise it will make selling demonstrators a bit more of a pain.

I am wondering though: who will pay for all these
non MOT mileage checks? They talk about the measuring place being on the hook for doing it accurately, so I would imagine it will be via OBD2 checks with some suitable software?

Also; what happens when the MOT centre puts the mileage in wrong? Do I suddenly get an enormous bill?

 

[NikLiverpool]

At the moment 15% of the UK population leaves in rural areas; around 10 million.
A number that is on constant decline. Furthermore the majority of rural population tends to vote for Conservatives (or alternatives).
I reckon they will be willing to take the hit by losing these votes by presenting it as a fair approach regardless the car you own (ICE or EV) and it will go down better with urban population (more labour inclined in general).

 

[tsedge]

At the moment 15% of the UK population leaves in rural areas; around 10 million.
A number that is on constant decline. Furthermore the majority of rural population tends to vote for Conservatives (or alternatives).

Not down here, we are Lib Dem at the moment almost everywhere, have been Tory before, only have Labour in the cities. Green polling well and Reform too at the moment.

I reckon they will be willing to take the hit by losing these votes by presenting it as a fair approach regardless the car you own (ICE or EV) and it will go down better with urban population (more labour inclined in general).

You are probably right! Maybe Reform will reform it, since they look the most likely replacements at the moment.

 

[Ian 2455]

At the end of the day, most EV owners will probably still drive an EV because we know they're so much better than ICE in just about every way, but it'll make it harder to get non EV drivers to switch to electric.

Very true! And every year from 2030 onwards, EVs will co.e.j to their own. All we need now is for certain CPOs to drop their prices....looking at you Gridserve etal....

 

[Lovemyev]

Of course they have implemented the pay by mile for EV’s and PHEV’s as it’s an easy target, but have no idea how they intend to manage it of course !.
Commencing in 2028 this gives them a “stop gap” while they try and figure it all out .
But they have to stay in power to do this.
Also, giving it 2 years will give time to see just how it effects the reduction in EV & PHEV sales in the motor trade maybe .
Reduced orders means a reduction in factory production rates and the knock on effect is pretty obvious to us at least.
If demand falls rapidly, they may have to revisit the idea .

 

[MikeJS]

It does seem like they have gone out of the way to annoy almost everyone: eg why can't I any longer save £20,000 cash / year in an ISA but an over-65 person can? You'd have thought it would be the other way around to encourage oldies to spend their pots!

It is about attitude to risk. When we are younger it makes sense to have a higher risk portfolio, however, as you get older they gasin is less important that keeping what you have safe. This is how any financial adviser would plan.

 

[tsedge]

It is about attitude to risk. When we are younger it makes sense to have a higher risk portfolio, however, as you get older they gasin is less important that keeping what you have safe. This is how any financial adviser would plan.

I'd rather make own decision: which I could before this change. My risk appetite may be more conservative or liberal than others.

But anyway, it was just an example of something in the budget that annoyed me, not the end of the world.

 

[MG Clive]

Luckily this would only have cost me £75 based on my previous 12 months mileage, but most people will be hit much harder.

 

[salty]

Luckily this would only have cost me £75 based on my previous 12 months mileage, but most people will be hit much harder.

Still £75. Me personally about £250.