Rural drivers to face steepest bills under UK’s mileage-based electric vehicle tax

The Guardian - World NewsEN 2 min read 100% complete by Alex DanielFebruary 16, 2026 at 08:13 AM

AI Summary

medium article 2 min

A forthcoming UK mileage-based tax on electric vehicles, set to begin in 2028, is projected to disproportionately affect rural drivers. The 3p-per-mile charge, intended to offset lost fuel duty revenue, will require drivers in the south-west of England to pay nearly four times as much as those in London, according to an analysis by The Electric Car Scheme. This disparity raises concerns that the tax could discourage electric vehicle adoption, particularly in rural areas where drivers tend to travel longer distances. While the tax is projected to generate £1.1 billion annually, critics warn it could hinder the government's efforts to accelerate EV sales, despite incentives like the electric car grant. The Office for Budget Responsibility estimates the tax could reduce EV sales by about 440,000 over five years.

Key Entities & Roles

Key Player Opposition Context

Office for Budget Responsibility 40% North-East (England) 40% North-West (England) 40% East Midlands 50% Thom Groot ×260% The Electric Car Scheme 60% Labour Party (UK) 70% London ×270% South-West England ×280% United Kingdom 90%

Keywords

electric vehicles 100% mileage-based tax 90% rural drivers 80% fuel duty 70% ev uptake 60% electric car sales 50% zero emission vehicle mandate 40% electric car grant 40%