Pay per mile. Another blow for EV drivers

[tsedge]

@EVsince2016 The VED consultation explicitly states that foreign mileage will not be deductible, the total mileage will be charged. - the reason given for not deducting this is privacy concerns, not wanting to monitor where people drive.

 

[salty]

So basically:

• You fill in your predicted / actual mileage when you renew your VED.
• Everyone gets mileage checked annually, including cars that don't need an MOT yet.

So which ever way they enforce it, or justify it. It's gonna cost us more dosh, it's as simple as that. Even low mileage drivers, will be pay more. I shudder to think, what's coming next.

 

[tsedge]

Note that if you lease a car you won't pay this yourself, likely to be paid by the leasing compant as part of your mileage deal.

 

[tsedge]

This bit is interesting:

 

[Lollipopman]

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.

 

[salty]

Note that if you lease a car you won't pay this yourself, likely to be paid by the leasing compant as part of your mileage deal.

Mmm, possibly. But won't the leasing company, just charge you more for the deal. Only presuming. You don't usually get owt for nowt. EV drivers used too, but that's slowly being eroded.

 

[maskull]

And how is move going to help EV uptake ? People will be more likely to buy PHEV or go back to dinosaur juice entirely

 

[tsedge]

Basically, when you buy a second hand car you will be able to see what mileage it has been paid up to on the DVLA database as part of your buying decision - knowing you will be on the hook for the difference.

They are clearly keen not to get involved resolving any discrepancies, but this creates buyer's risk, especially if someone isn't clued up and this adds a new way to get ripped off.

Consultation document is here:

https://assets.publishing.service.gov.uk/media/69260d23aca6213a492dd0a2/Consultation_on_the_Introduction_of_eVED.pdf

 

[tsedge]

Mmm, possibly. But won't the leasing company, just charge you more for the deal. Only presuming. You don't usually get owt for nowt. EV drivers used too, but that's slowly being eroded.

Yep, you'll pay a bit more per month or in the upfront charge, that's all - this is covered in the consultation doc.

 

[NikLiverpool]

And how is move going to help EV uptake ? People will be more likely to buy PHEV or go back to dinosaur juice entirely

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

Petrol frozen duty goes away and then it will increase each year.
PHEVs will get it worst since they will have to pay the tax per mile (although at half rate) and still pay higher prices on the pump when they use petrol.

 

[tsedge]

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.

 

[salty]

And how is move going to help EV uptake ? People will be more likely to buy PHEV or go back to dinosaur juice entirely

It's not. But for some so called clever well educated people. They really are as thick as

 

[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.