Labour urged to 'rethink' pay-per-mile car taxes amid fears it will 'delay' transition to EVs

Felix Reeves

By Felix Reeves


Published: 16/02/2026

- 09:24

Experts have called on Labour to extend the Electric Car Grant and rethink EV tax policy

Millions of drivers are being impacted by a postcode lottery that could hamper their ability to invest in electric cars and ditch their old petrol and diesel models.

New research has found that Scotland and the South West of England are "in danger of being left behind" in the transition to zero emission vehicles.


Labour plans to ban the sale of new petrol and diesel cars from 2030, before only electric vehicles will be on sale from 2035.

Experts have highlighted fears that drivers could face difficulties when switching to electric vehicles if they live in rural areas, as it could raise more issues for them.

Research has found that an average of 31.2 per cent of Autotrader users looked at one EV advert or more in the last 90 days.

Despite this, there were clear divisions in the amount of interest in electric vehicles depending on where they were searching from.

Drivers in the KW postcode in Wick, Scotland, made up the smallest share of Autotrader users who looked at an electric car, at just 21.4 per cent.

In comparison, motorists in Warrington (WA postcode), Cheshire, had the highest share of 35.9 per cent.

Electric car charging

Experts have warned of a clear postcode divide in drivers searching for electric vehicles

|

GETTY

Ian Plummer, chief customer officer at Autotrader, highlighted that drivers in rural areas face larger hurdles when switching to EVs.

He specifically pointed out the South West of England and Scotland as areas where "structural challenges" rather than a "lack of appetite".

"These areas have more rural communities and longer average driving distances, all of which make switching to electric feel riskier and less practical for drivers - even though that's not necessarily the case," Mr Plummer said.

Data shows that both regions have more rapid chargers per head than other parts of the UK overall.

An electric car charging station

There are more than 88,000 public electric vehicle chargers across the UK

|
PA

There are large disparities in the number of public chargers around the UK and between regions.

Greater London (27,986) has more than double the number of chargers found in Scotland (7,484), Wales (3,869) and Northern Ireland (675) combined.

In total, there are 88,513 charging devices around the UK, with drivers able to make use of 122,690 connectors at more than 45,000 locations.

Mr Plummer added that the UK needed to get "serious about nationwide progress", all people needed to be supported in the transition.

Chancellor Rachel Reeves with the Budget red box

Chancellor Rachel Reeves confirmed pay-per-mile taxes for electric car owners last year

|
PA

He suggested that this could be done by "widening the scope" of the Electric Car Grant to include the second-hand market, while calling on the Government to "rethink its policy on taxing EVs".

Chancellor Rachel Reeves announced the introduction of Electric Vehicle Excise Duty (eVED) in the recent Autumn Budget to replace lost funding from fuel duty.

The pay-per-mile scheme will charge electric car owners 3p per mile, while hybrids will be charged 1.5p, once the scheme is finalised in 2028.

Mr Plummer concluded: "Introducing pay-per-mile charging sends mixed messages to consumers which risks delaying the UK's transition at a time when only around five per cent of cars on UK roads are electric."