EV Mileage Tax Hits Rural Drivers Hardest from 2028

Published: 16 February 2026. The English Chronicle Desk. The English Chronicle Online.

A new EV mileage tax in the UK is set to hit rural drivers hardest, research shows. Introduced in the autumn budget and scheduled for 2028, the 3p-a-mile charge targets electric vehicle owners as petrol duty revenues decline. Analysis indicates residents in the south-west of England could face bills nearly four times higher than London drivers, with rural motorists in smaller towns averaging £156.51 a year. This EV mileage tax will disproportionately affect people living outside major urban centres, despite the government’s intention to make electric vehicles more accessible.

Data from the National Travel Survey 2024 reveals that London drivers, already with high EV ownership and charging infrastructure, would pay just £33.09 annually under the new scheme. The East Midlands and south-west, by contrast, would see averages of £105.09 and £110.25 respectively. Officials argue the charge is fair, following the principle that drivers who travel more contribute more. However, critics warn this EV mileage tax could slow electric vehicle adoption, creating barriers just as nationwide sales aim to reach the zero emission vehicle target of 28%.

Thom Groot, chief executive of The Electric Car Scheme, highlighted that mass-market buyers remain cautious about EVs. “Even small financial hurdles can discourage people from making the switch,” Groot said. The analysis found smaller towns and rural areas near cities would face the highest costs, whereas urban residents pay about half as much. The government’s consultation on the 3p-a-mile charge continues until mid-March, with plug-in hybrids charged at a reduced rate of 1.5p per mile.

Electric vehicle sales rose to a record 473,000 in 2025, representing 23.4% of total car sales. This increase comes despite concerns the EV mileage tax could reduce uptake by approximately 440,000 vehicles over five years, according to the Office for Budget Responsibility. The tax is designed to offset the £24bn fuel duty shortfall this year, down from £27.5bn in 2019-20.

The mileage-based levy is part of a broader strategy, paired with a £1.3bn increase in the electric car grant. Buyers can receive up to £3,750 off new EVs, incentivising adoption despite the new costs. Government spokespeople emphasise that EVs remain half the annual cost of petrol cars under the tax, ensuring they continue as a cheaper, greener option.

Groot reinforced that environmental and financial advantages of electric vehicles persist. “While the tax raises some costs, EVs still offer the most practical, future-proof choice for UK drivers,” he said. Observers note, however, that rural communities may feel the brunt, highlighting the tension between fair taxation and promoting sustainable transport. The policy raises questions about equity, infrastructure, and the government’s approach to supporting widespread electric vehicle adoption.

As consultations continue, analysts stress that careful adjustments will be needed to balance revenue needs with the drive for greener transport. The EV mileage tax exemplifies the complexities of transitioning to an electric future, especially for populations outside major cities. How the government addresses these regional disparities will likely shape EV uptake in the next decade, with urban-rural differences remaining a significant policy challenge.

The government insists the tax is necessary to maintain revenue while encouraging responsible use, while critics argue that the EV mileage tax disproportionately burdens rural residents. With electric vehicle technology evolving rapidly, the stakes are high for both environmental goals and the automotive market. The next consultations and potential policy refinements will determine if rural drivers face continued high costs or if adjustments mitigate the impact.

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