As reports emerge that the Treasury may consider a pay-per-mile or fuel duty-style tax for electric vehicles, Paul Holland, Managing Director for UK/ANZ Fleet at Corpay (including Allstar), warns that such a move would risk stalling the UK’s transition to cleaner transport.
He says the Autumn Budget is the government’s chance to back electric adoption, not burden it, noting that higher running costs would push both drivers and fleets to delay the switch.
“The Autumn Budget is where the government sets out its priorities and right now, taxing EV drivers would send all the wrong signals. The idea of a pay-per-mile or EV-equivalent to fuel duty might look like a quick fix for Treasury finances, but it risks derailing the very progress the UK needs to hit its climate and transport goals.
The industry has been working hard to make electric vehicles viable, from infrastructure to affordability to consumer confidence, and that momentum is fragile. If the cost of running an EV rises, people will simply wait longer to switch.
The government can’t ask drivers and fleets to go electric, then punish them for doing so. This is the moment to keep incentives in place and make the transition easier, not harder.”