Labour plans a 3p per mile tax on electric cars from 2028 to raise £1.1bn a year. This charge replaces lost fuel duty as drivers shift from petrol to electric vehicles. Analysis shows rural drivers in England's south-west face the biggest hit, paying £110.25 a year extra. The East Midlands follows with £105.09, while Londoners pay only £33.09 despite having many electric cars and charging points. Thom Groot, CEO of The Electric Car Scheme, said the tax may discourage people from buying EVs. "There are still a lot of people in the mass market who are very sceptical about EVs … so anything that gives people a reason not to [buy one] creates yet another boundary." Drivers living near small towns around cities pay the most, averaging £156.51 per year, while city drivers pay £76.02. This data comes from the 2024 National Travel Survey. Electric car sales hit a record 473,000 in 2025, 23.4% of all cars sold, but still fall short of the 28% national target. Groot added, "Even when this tax comes in, the major savings and environmental benefits of going electric remain firmly in place. EVs will continue to be the most practical and future-proof choice for UK drivers." The tax comes with a £1.3bn increase in electric car grants, offering up to £3,750 off new EVs. However, the Office for Budget Responsibility warns the mileage tax could reduce EV sales by 440,000 over five years. Consultations on the tax, which is 1.5p per mile for plug-in hybrids, continue until mid-March. Currently, petrol drivers pay around £480 a year in fuel duty, while EV drivers pay none. A government spokesperson said, "Under the new system, electric vehicles will pay half the duty of petrol cars – still the cheaper, greener choice."