Rachel Reeves told to scrap 3p pay-per-mile car tax days before announcement - Birmingham Live

By Christian Abbott

Rachel Reeves told to scrap 3p pay-per-mile car tax days before announcement - Birmingham Live

Rachel Reeves has been urged to support electric car drivers at the Labour Party government Autumn Budget. The Chancellor has been urged to ditch pay-per-mile taxes amid plans for a 3p pay-per-mile rate for electric car users.

Guy Bartlett, Believ's chief executive, said: "EVs are the future of sustainable transport and as such must be accessible, with cost an integral part of accessibility."

He called on Labour to produce a strategy that acknowledges crucial private sector funding while backing the UK's transport decarbonisation efforts.

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"As outlined in our four wishes, we need the Treasury to take a holistic, end-to-end approach to furthering EV uptake, recognising vital, private investment and supporting the UK's decarbonisation of transport," he said.

Mr Bartlett added: "Combined with Believ's mission to deliver cleaner air for all, and our £300million commitment to expanding the UK's charging network, these measures send a powerful message that the UK is serious about making EVs a viable choice for everyone."

The Association of Fleet Professionals (AFP) stated that such a model risks encouraging some high-mileage drivers to stick with petrol and diesel if the economics turn against them, a point reiterated in its warnings about "unforeseen effects" should blanket per-mile charging arrive too quickly.

Startin Group's Lee O'Connell added: "Fleets have planned around stable tax policy. Sudden shifts unsettle decision makers, and we are already hearing concern from operators running vans and field teams who fear they will be disproportionately exposed."

Lee also addressed claims Ms Reeves could target salary sacrifice schemes. O'Connell, head of group fleet at Startin Group, said: "Businesses are nervous, and they are right to be.

"These proposals cut straight across the momentum we have all worked hard to build.

"If you tell a driver they could be hit with an extra £250 a year in running costs and possibly lose part of their salary sacrifice advantage, some will question whether switching to electric still makes financial sense."

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