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In a striking revelation, a recent analysis has shown that drivers in south-west England will bear the brunt of Labour’s proposed electric vehicle (EV) road charge, set to roll out in 2028. The 3p-a-mile levy is projected to create a staggering financial disparity, with rural motorists facing charges nearly four times higher than those in London. As the government seeks to offset dwindling fuel duty revenues in the wake of rising EV adoption, critics argue that this move could hinder the very transition to electric vehicles that policymakers are striving to achieve.
Regional Disparities Unveiled
The analysis indicates that the south-west will see an average annual increase of £110.25 due to the new charge, with drivers in the East Midlands following closely at £105.09. In stark contrast, Londoners can expect to pay a mere £33.09 per year, despite already having a robust infrastructure of electric vehicles and charging points. The north-east and north-west will also fare better, with average costs of £82.20 and £83.79 respectively.
This geographical divide raises serious concerns about equity in the transition to greener transport. Thom Groot, CEO of The Electric Car Scheme, which conducted the analysis, warned that this tax could deter potential EV buyers just as the government is trying to shift ownership from early adopters to the wider public. He commented, “There are still a lot of people in the mass market who are very sceptical about EVs… so anything that gives people a reason not to [buy one] creates yet another boundary.”
Rural Communities Hit Hardest
The impact of this new levy will be felt most acutely by residents of smaller towns and villages near urban centres, who could see their costs skyrocket to an average of £156.51 per year. In contrast, urban dwellers will face an average increase of £76.02. This disparity highlights a growing concern regarding the accessibility of electric vehicles for those living outside major metropolitan areas.
As electric car sales surged by nearly 25% in 2025, reaching a record 473,000 units—approximately 23.4% of the total market—there remains a significant gap between current sales and the government’s ambitious target of 28% under the zero-emission vehicle mandate. Groot emphasised that despite the upcoming tax, the fundamental advantages of electric vehicles—both financial and environmental—will remain intact. He asserted, “EVs will continue to be the most practical and future-proof choice for UK drivers.”
Government’s Justification and Future Implications
The mileage-based road charge, announced alongside a £1.3 billion enhancement to the electric car grant—which offers purchasers up to £3,750 off a new EV—aims to address the anticipated £24 billion drop in fuel duty revenues. As electric vehicle adoption rises, the Office for Budget Responsibility has projected that this new tax could lead to a reduction in EV sales by about 440,000 units over a five-year period.
Government officials justified the new structure by stating that it mirrors the current fuel duty system, asserting that “those who drive more will pay more.” They argue that the new tax will ensure electric vehicle drivers contribute to road maintenance in a manner comparable to petrol drivers, who currently pay around £480 annually in fuel duty.
Why it Matters
The looming implementation of this EV road charge underscores a critical juncture in the UK’s journey towards a sustainable transport future. As rural drivers face disproportionate costs, the risk of alienating potential EV buyers becomes alarmingly real. Policymakers must navigate this complex landscape carefully, ensuring that the transition to electric vehicles is equitable and accessible for all. If not, the very objectives of reducing emissions and encouraging sustainable transport could be undermined, leaving rural communities behind in the green revolution.
