Is the UK’s New Per-Mile EV Tax Already Slowing Electric Car Sales?

29 January 2026

Paul Francis

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Electric vehicles were once sold on a simple promise. Lower running costs, cleaner driving, and long-term savings compared to petrol and diesel cars. But a proposed change to how EV drivers are taxed is now raising uncomfortable questions about whether that promise is starting to unravel.

Black car speeds on a road with banknotes flying around. Green trees in the background, conveying a sense of urgency and motion.

Although the UK’s new per-mile road tax for electric vehicles will not come into force until 2028, evidence is already emerging that the policy is affecting consumer confidence and, by extension, electric car sales. For a market that relies heavily on momentum and public trust, even the prospect of higher future costs may be enough to change buying decisions today.

What is the new per-mile EV tax?

From April 2028, the UK government plans to introduce a distance-based road tax for electric and plug-in hybrid vehicles. The policy is often referred to as a pay-per-mile tax and sits under the broader reform of Vehicle Excise Duty for low-emission vehicles.

Under current proposals:

Fully electric vehicles will be charged around 3 pence per mile
Plug-in hybrid vehicles will be charged around 1.5 pence per mile

The tax is designed to replace revenue traditionally raised through fuel duty. As petrol and diesel use declines, the Treasury faces a growing gap in funding for roads and transport infrastructure. A mileage-based system is intended to ensure that all drivers contribute according to how much they use the road network.

A teal car parked at night under misty streetlights, with the license plate GK70 GYJ. The mood is mysterious and serene.

How will the tax be billed?

The government has indicated that the system will avoid live tracking or GPS monitoring. Instead, mileage will likely be declared annually when Vehicle Excise Duty is renewed, with odometer readings checked at MOTs or similar inspections.

Drivers who exceed their declared mileage would pay the difference later, while those who drive less may be eligible for adjustments. In theory, the system mirrors existing administrative processes rather than introducing constant surveillance, although privacy concerns remain part of the public debate.

What could this cost the average driver?

The financial impact depends entirely on how much someone drives.

A driver covering around 8,000 miles per year, close to the UK average, could face an additional cost of roughly £240 annually from the mileage charge alone. Higher mileage drivers could see costs rise well above £300 per year.

This is on top of standard road tax charges that EV drivers will already be paying by that point. While electric cars may still be cheaper overall than petrol or diesel vehicles when maintenance and energy costs are included, the margin is narrowing.

Is this already affecting EV sales?

While the tax has not yet been implemented, modelling by economic and automotive analysts suggests that future running costs play a major role in purchase decisions.

Forecasts linked to Office for Budget Responsibility modelling indicate that the introduction of a mileage-based tax could result in hundreds of thousands fewer electric vehicles on UK roads over the next several years than previously expected. This reflects not a collapse in demand, but a measurable slowing of adoption.

Industry reporting has also highlighted weaker growth in EV registrations during late 2025, with some manufacturers experiencing sharp drops. While multiple factors are at play, including vehicle pricing and charging infrastructure concerns, uncertainty around future taxation is increasingly cited as part of the problem.

For many buyers, the appeal of switching to electric rested on cost certainty. Introducing a new variable into that equation, even years in advance, creates hesitation.

Why perception matters as much as policy

Electric vehicle adoption relies heavily on confidence. Buyers are often making long-term decisions based on projected savings over five to ten years. When policy signals change, even if implementation is distant, that confidence can be shaken.

The per-mile tax is fiscally logical from the government’s perspective, but from the consumer’s point of view it feels like the goalposts are moving. Some drivers now question whether EVs will continue to be favoured, or whether future costs will keep rising as adoption grows.

This uncertainty does not just affect private buyers. Fleet operators, leasing companies, and charging infrastructure providers also base investments on predictable demand. Slower adoption can ripple across the entire ecosystem.

Urban and rural impacts

The tax is likely to affect drivers differently depending on where they live.

Urban drivers who rely on short journeys and public transport may feel little impact. Rural drivers, who often have no alternative to longer car journeys, could be disproportionately affected. For those households, the mileage charge risks becoming a penalty rather than a fair usage fee.

This has raised concerns about whether the policy adequately reflects regional differences in transport access.

A delicate moment for EV policy

The UK is at a critical stage in its transition away from petrol and diesel vehicles. Sales targets, emissions goals, and infrastructure investment all depend on steady growth in EV adoption.

The per-mile tax is intended to solve a long-term funding problem, but its timing and messaging matter. Introducing uncertainty too early risks slowing momentum before alternatives are fully in place.

Electric vehicles are unlikely to disappear from the UK market. But whether they become the default choice for the average driver may depend less on technology and more on how stable and predictable government policy feels in the years ahead.

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In the glittering world of Hollywood, not all dreams make it to the silver screen. Some projects, despite their enormous potential and the star-studded talent attached to them, remain forever in the realm of "what could have been." Among these are some of the most intriguing and ambitious films never made, each with its own unique story that has captivated the imaginations of fans and filmmakers alike. From Alejandro Jodorowsky’s psychedelic epic to George Miller’s ambitious superhero ensemble, these unproduced films offer a glimpse into alternate cinematic realities.

Jodorowsky's Dune: The Psychedelic Epic

Jodorowsky's Dune stands out as perhaps the most legendary of these unfinished projects. In the mid-1970s, avant-garde filmmaker Alejandro Jodorowsky embarked on an audacious quest to adapt Frank Herbert’s science fiction masterpiece, "Dune." His vision was nothing short of revolutionary, intending to create a 10-14 hour cinematic experience that would transcend traditional film and become a transformative journey for viewers. Jodorowsky assembled an extraordinary team, including surrealist artist Salvador Dalí, Orson Welles, Mick Jagger, and H.R. Giger, with a soundtrack by Pink Floyd. Despite the staggering talent and creativity involved, the project was ultimately deemed too ambitious and costly. Financial and logistical issues, combined with Hollywood's reluctance to back such an unconventional vision, led to its demise. The story of "Jodorowsky’s Dune" was later immortalised in a 2013 documentary, offering a fascinating look at what might have been and showcasing the profound influence it had on future science fiction films.

The Man Who Killed Don Quixote: A Dream Delayed

The Man Who Killed Don Quixote concept art piece

Equally compelling is Terry Gilliam’s "The Man Who Killed Don Quixote." Gilliam, known for his work with Monty Python and his uniquely surreal directorial style, spent nearly three decades attempting to bring this project to life. The film, a loose adaptation of Miguel de Cervantes’ classic novel, faced an extraordinary array of setbacks. The initial production in 2000 was plagued by natural disasters, financial issues, and a severe back injury suffered by lead actor Jean Rochefort. These calamities, captured in the documentary "Lost in La Mancha," halted the project, and subsequent attempts to revive it faced similar challenges. It wasn’t until 2018 that Gilliam finally completed the film, though it differed significantly from his original vision. The journey of "The Man Who Killed Don Quixote" remains a testament to artistic perseverance, highlighting the often tumultuous path from script to screen.

Atuk: The Cursed Comedy

"Atuk," based on Mordecai Richler’s novel "The Incomparable Atuk," has earned its place in Hollywood legend due to the so-called "Atuk curse." This comedy about an Inuit navigating the modern urban jungle was attached to several high-profile actors, each of whom died under tragic and unexpected circumstances before production could begin. John Belushi, Sam Kinison, John Candy, and Chris Farley all expressed interest or were cast in the lead role, only to meet untimely deaths. The eerie pattern of misfortune has led to a macabre fascination with the project, ensuring that "Atuk" remains one of the most infamous unproduced films in history.

Batman: Year One: The Dark Reimagining

Concept of Gotham City as seen from Above

In the realm of superhero cinema, Darren Aronofsky’s "Batman: Year One" represents a radical departure from the traditional portrayals of the Dark Knight. Aronofsky, known for his dark and psychologically intense films, envisioned a gritty reboot of Batman that would strip the character down to his essence. This version of Bruce Wayne would lose his fortune, live on the streets, and don a makeshift costume. Despite the intriguing premise, Warner Bros. ultimately chose a different path, opting for Christopher Nolan’s "Batman Begins," which balanced realism with a more traditional narrative. Aronofsky’s bold vision remains a fascinating "what if" scenario, reflecting the creative risks involved in reimagining iconic characters.

Justice League: Mortal: The Superhero Ensemble That Almost Was

Finally, George Miller’s "Justice League: Mortal" was an ambitious attempt to bring together DC Comics' most iconic superheroes in a single film long before the success of the Marvel Cinematic Universe. With a cast that included Armie Hammer as Batman, D.J. Cotrona as Superman, and Megan Gale as Wonder Woman, the project promised a sprawling, epic narrative. However, it was plagued by a series of setbacks, including the 2007-2008 Writers Guild of America strike, financial issues, and concerns over audience confusion due to multiple actors playing the same characters in different franchises. Despite never being made, "Justice League: Mortal" has become a source of endless speculation and interest, illustrating the complexities and challenges of launching a shared cinematic universe.

The Allure of the Unmade

These unproduced films, each with their unique blend of ambition, talent, and misfortune, offer a tantalising glimpse into the alternate realities of cinema. They stand as reminders of the fragile nature of filmmaking, where even the most promising projects can falter and fall into the realm of legend. Yet, their stories continue to inspire, serving as both cautionary tales and sources of endless fascination for those who dream of what might have been.