Pay per mile. Another blow for EV drivers

[PeterHR2]

It's everyone's democratic (and undemocratic) right to complain about taxation (I do, too). Hell, it's been happening at least since Robin Hood was 'alive', after those pesky Normans poked Harold in the eye at Hastings... and I think the Bible mentions such issues. However, services, defence of the realm, etc. have to be paid for somehow.

Even with the measures announced today, the UK total tax burden doesn't come anywhere near what it does in large parts of Europe, where people from the UK often visit and compliment those countries on various aspects of their society's services that seem superior to those in ol' Blighty. (I wonder why they are better!)

"AI Overview

When comparing the total tax burden across Europe, Scandinavian and Western European countries generally have higher tax rates than the UK. According to Eurostat data from 2024, the countries with the highest tax-to-GDP ratio were Denmark (45.8%), France (45.3%), and Belgium (45.1%). In contrast, the UK's tax burden was forecast to be lower at 37.7% of GDP by 2027–2028.
Tax burden can be measured in different ways, including overall tax-to-GDP ratios, top income tax rates, and the average tax burden on labor.

Overall tax-to-GDP ratio
The tax-to-GDP ratio provides the broadest picture of a country's tax burden, showing total tax revenue as a percentage of its gross domestic product.
Top EU countries by tax-to-GDP ratio in 2024:

1. Denmark: 45.8%
2. France: 45.3%
3. Belgium: 45.1%
4. Austria: 43.8%
5. Sweden: 42.5%

In comparison, the UK's tax-to-GDP ratio was 35.3% in 2023, and while it is expected to rise, it will likely remain below the levels seen in many of these nations. The main reason for the difference is that many Western European countries raise significantly more revenue from social security contributions than the UK."

 

[tsedge]

Well said. I think though the feeling here in the UK is that the taxes we have are not well spent - we don't have enough to show for them, so if they did rise to 45% we would not become a Scandinavian paradise.

One of the reasons people campaign for lower taxes is exactly this; successive governments of all colours are so bad at spending the money that the best/least we can do is minimise the bill!

 

[LenEV2016]

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


If that happens then that may very well be the end of the Union, Reform in power could well do the hapless donuts that run Scotland at the moment jobs for them

 

[PeterHR2]

@tsedge The thing is, it is likely just that: a perception. Yes, there are always going to be instances of poorly spent public money (and fraud), and those will be pounced on by the press, especially if they have political axes to bear, and these should be minimised. But in the round, compared with the total government budgets (of whatever political colour), those total to really piddling amounts.

 

[tsedge]

Perhaps. I find the dominant perception where I live is the one I outlined, but yes people think differently on this and debating it is a good thing.

I don't believe it is mainly media-driven, I think it is experience-driven.

My decade plus spent consulting (which was 50% public sector organisations) opened my eyes to how dysfunctional our institutions are and the enormous scope to improve them.

My experiences with my dad in hospital recently confirmed both of my views about the NHS (wonderful people but a completely broken system).

Anyway, though it is good to talk, I have overdone it already on this thread!

 

[colsky]

Though they are moving the £40k list price luxury vehicle tax up to £50k list price.

 

[Les burrows]

Thanks for you comments Tom at #61, as for it being a consultation what ever we the public suggest or put forward won’t even get looked at let alone considered i feel.

I know lots of ICE owners will be laughing at us lot who own EVs but they have fuel duty rises coming to them in 2026 so they have not got away Scot free so to speak

To me personally 3p per mile will probably mean something like 2-3 hundred pounds per year to others much more, but I take some comfort from the many benefits I have from being a EV owner/driver, what I mean by that is,
1. by having access to smart electricity tariffs which don’t only power my vehicles but also many appliances in my home on a much cheaper tariff, I don’t think any tariffs come anywhere near the tariffs that are available by owning an BEV but of course i do mean if you can charge at home.

2. The fact I don’t stand around in the weather anymore filling up my vehicle with fossil fuels and the fact I do consider I’m doing what little I can do to help our planet not so much saving it but by improving air quality on it for all of us to breathe.
So there are still many benefits and good reasons to drive a BEV in my humble opinion.

From anyone looking to purchase a new vehicle the increase from £40-50,000 for the expensive or luxury car tax as blown the choices wide open I just hope Manufactures & dealers won’t take the opportunity to hike prices.

These mileage charges have been rumoured for years but now are to be introduced on vehicles which unbelievably the governments for quite a few years now have been doing the best to persuade people to buy and drive EVs, but I think they have not help encourage that today and in the last buget also with the introduction of the RFL.
But I hope this is a step in the direction of scrapping all road taxes by introducing mileage charges on every vehicle on our roads and with no RFL.which would be a much fairer system in my opinion.
Les.

 

[tsedge]

I've just watched some of the budget speech back, and when Reeves announced this 40k to 50k increase she said that it would save some EV owners £440 a year (I listened back to check the amount that she said). Isn't it £425 and not £440?!! Good to know that she knows her facts!

The amounts go up each year with CPI, so she might be talking about future year figures.

 

[siteguru]

My mate from my table tennis club has an EV (Skoda Enyaq) ... he typically does about 20k miles per year, so 3p per mile is going to cost him an extra £600.

 

[securespark]

Whatever we think about taxes, I do think it is utterly ridiculous to do this when the Govt. are trying to encourage EV ownership in the run-up to the phasing out of ICE.

 

[Lovemyev]

Whatever we think about taxes, I do think it is utterly ridiculous to do this when the Govt. are trying to encourage EV ownership in the run-up to the phasing out of ICE.

Let’s be really clear here folks !.
Now the government have introduced a “pay per mile” system change on EV’s and PHEV’s from 2028, this is only the introduction into expanding this system on to ALL fuel types for private vehicles.

 

[JohnV6]

And raising the rate as well.

 

[Les burrows]

Is it still worth driving an EV even at 3p per mile you bet your bottom dollar it is.

No body has any idea how this is going to pan out.
Just take a look at these 3 short videos.
Les.

 

[Les burrows]

 

[Les burrows]

Well from the 3 videos posted here I appears I was right to say this as not been thought through even the experts don’t know how this 3p per mile is going to work.
Les

 

[Black estate]

And raising the rate as well.

Car owning for the rich only

 

[Black estate]

Can some one remind me who labour were set up for and by in the 1st place ? ,as they sure ain't looking after that part of the population now is

 

[LenEV2016]

Can some one remind me who labour were set up for and by in the 1st place ? ,as they sure ain't looking after that part of the population now is

But they did give people on benefits more of our money

 

[Gomev]

I recently inherited my dad's 2014 diesel Golf, only done 64,000 miles.

Had planned to swap it for an EV to become a 2 EV household, but it is only £35/yr VED and does 50mpg... and is cheap to insure.... and parts are cheap as chips.

So am thinking about just keeping it. I don't want to face up to £1000/yr VED every March with 2 EVs.

Fuel duty is approx £2.88/gallon or 52.95p/litre plus VAT, total 63.54p/litre. So at 50mpg you are paying 5.76p per mile. Just for comparison purposes. The other savings look good though, unfortunately.

 

[PeterHR2]

And raising the rate as well.

The ppm rates of 3ppm and 1.5ppm are (to be) index linked