The Treasury has reaffirmed plans to charge electric car owners for each mile they drive from April 2028. Its response to a public consultation says drivers could opt to use vehicle connectivity technology to provide GPS-tracked mileage instead of estimating their journeys manually.

The proposed electric vehicle excise duty would be 3p per mile for fully electric cars and 1.5p per mile for plug-in hybrids. It would come on top of the £200 annual standard vehicle excise duty. The Treasury says the charge is intended to reflect the contribution petrol and diesel drivers make through fuel duty.

Under the plans, payments would initially be based on predicted annual mileage, checked against MOT records. The Treasury also says the per-mile rates would increase each year in line with Consumer Prices Index inflation from 2029-30. More than 5,000 stakeholders raised concerns in the consultation.