Written Question·Treasury·UIN 95953

Electric Vehicles: Excise Duties

Tabled: 1 December 2025
Answered: 8 December 2025

Question

Dr Scott Arthur

LabourEdinburgh South West

To ask the Chancellor of the Exchequer, what assessment her Department has made of the potential impact of the proposed EV mileage charge on (a) electric vehicle residual values and (b) the cost of new electric vehicle finance agreements.

Answer

Dan Tomlinson
As announced at Budget 2025, the Government is introducing Electric Vehicle Excise Duty (eVED) from April 2028, a new mileage charge for electric and plug-in hybrid cars, recognising that EVs contribute to congestion and wear and tear on the roads but pay...

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