UK Plans to Cut EV Charging Costs to Offset Mileage-Based Tax Impact

UK Chancellor Rachel Reeves is pushing to lower electric vehicle (EV) charging costs to alleviate market concerns sparked by a proposed mileage-based tax. According to internal Treasury forecasts, imposing a 3-pence-per-mile charge on EVs starting in 2028 would severely dampen consumer demand and significantly hurt EV sales. In response, officials are urgently exploring measures to ease the financial burden on consumers and businesses, aiming to prevent the new policy from stifling the still-developing EV market. The move seeks to balance fiscal revenue needs with green transition goals, ensuring the widespread adoption of electric vehicles remains unimpeded.