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Why the UK’s New EV Pay-Per-Mile Tax Risks Slowing the Fleet Transition

November 7, 2025

A New Tax, and New Uncertainty: The UK Government has confirmed plans to introduce a new 'VED+' pay-per-mile tax for electric vehicles from April 2028, charging drivers around 3 pence per mile.

Framed as a 'fairness' measure, it’s already attracting widespread criticism from across the fleet, leasing, and automotive sectors.

Industry bodies such as the Society of Motor Manufacturers and Traders (SMMT) argue that this move comes “at entirely the wrong time”, just as the UK is working to accelerate zero-emission adoption.

The Industry Reaction

Leaders from Europcar, Novuna, Autotrader, and Close Brothers Motor Finance have all warned that this new charge could deter businesses and drivers from making the switch to electric, at a time when upfront costs and charging access already remain barriers.

Jon Lawes of Novuna Vehicle Solutions said it plainly:

“The EV transition remains fragile and needs support, not new burdens.”

For a fleet covering 20,000 miles annually, the new levy could add £600 to yearly running costs, a cost that many operators cannot easily absorb.

Why This Matters for Businesses

While fiscal policy evolves, the real risk is hesitation. Many fleet operators are already delaying procurement decisions due to uncertainty over future costs.

But inaction carries its own risks: missing ZEV compliance targets, higher long-term fuel costs, and falling behind competitors that have already gone electric.

Our View at EVC Solutions

At EVC Solutions, we understand that funding models and taxes will change. What doesn’t change is the long-term case for electrification: lower total cost of ownership, stronger sustainability credentials, and compliance with emerging corporate ESG standards.

Our message to fleet and facilities managers is simple:

Don’t let policy uncertainty pause your progress.

Future-ready infrastructure, installed and supported by experts, ensures your investment continues to deliver, no matter how regulations evolve.

The EVC Process

We make the transition clear and controlled:

  1. Consultation – Understanding your fleet and business needs.
  2. Survey – Assessing grid capacity and site requirements.
  3. Design – Creating a tailored infrastructure plan.
  4. Installation – Delivered with precision and minimal disruption.
  5. Management & Support – Ongoing optimisation and reliability.

Stay Ahead of Policy. Future-Proof Your Fleet.

The pay-per-mile proposal may slow some, but the most forward-thinking businesses will keep moving.
With EVC Solutions as your partner, the road to zero emissions remains clear, strategic, and achievable.

Book an appointment today and see what’s possible.

If you want to know more about anything to do with EV charge point installation for your fleet, hotel, place of work, commercial building, holiday let or home, please contact EVC Solutions – The Electric Vehicle Charging Specialists, and see what's possible.

Adrian Cooper
Business Partnering
EVC Solutions Ltd

...see what's possible.

Contact EVC Solutions on 03300 904030 or hit the Book an Appointment button.
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