Rural communities to be worst hit by Chancellor’s new electric car charge

The Chancellor’s decision to introduce a new 3p-a-mile charge for electric cars from 2028 will leave rural Scotland worst hit, the Scottish Liberal Democrats have warned.

The additional electric vehicle excise duty (VED) will be payable with existing VED or road tax at 3p a mile for fully electric cars or 1.5p for plug-in hybrids. The new EV pay-per-mile charge is expected to raise £1.1bn in 2028-29, rising to £1.9bn in 2030-31.

This is estimated to cost drivers around £250 on average, however this is likely to be considerably higher in rural areas where there are typically fewer public transport options and journeys are longer.

The OBR have also forecast that the pay-per-mile charge and counterbalancing measures would reduce EV sales.

It was the Liberal Democrats that introduced the Rural Fuel Duty Relief, and more recently called for its expansion to 20 more areas, saving drivers 5p a litre at the pump and helping motorists in rural areas who face higher fuel costs.

Scottish Liberal Democrat candidate for Caithness, Sutherland and Ross, David Green, said:

“This policy will hit rural areas like the Highlands harder than anywhere else due to the lack of public transport options and the large distances that journeys can involve.

“We know the extra costs that come with living in rural and remote areas. It's why Liberal Democrats introduced the Rural Fuel Duty Relief, and more recently called for its expansion to 20 more areas, saving drivers 5p a litre at the pump and helping motorists who face higher fuel costs.

"At the very least, it would make sense for a similar allowance to be made for EV drivers in rural and remote areas. It's not fair to ignore the burden this will place on key workers like carers and all the small businesses that depend on long-distance travel. The sparser charging network is already a disincentive to people switching.

“This must not be yet another city-centric policy that hits those in rural areas with the bill.”

Jamie Greene MSP, the Scottish Liberal Democrat Transport Spokesperson, added:

“It beggars belief that in the midst of a cost-of-living crisis and in the face of air pollution and rising respiratory diseases, the government is looking to hit people with an electric car tax.

“People who chose to buy an EV on the promise that it would be affordable will feel blindsided, and this would be yet another hit to Britain’s electric vehicle industry, which is already facing fierce competition from China.

“Both Scottish and UK Ministers should be making it easier to have an electric car by rolling out more charging infrastructure across the country - not penalising drivers with this unfair and short-sighted measure.”

ENDS

Notes to editors:

The Society of Motor Manufacturers & Traders (SMMT) has strongly opposed this tax, saying that “at such a pivotal moment in the UK’s EV transition, this would be entirely the wrong measure at the wrong time. Introducing such a complex, costly regime that targets the very vehicles manufacturers are challenged to sell would be a strategic mistake.”