Rural drivers in the UK are set to face the steepest bills under the country's new mileage-based electric vehicle tax, according to a recent analysis. The tax, which is part of the Labour government's plan to encourage the switch from petrol to electric vehicles, is expected to raise £1.1 billion annually. However, the analysis reveals a stark disparity in how rural and urban drivers will be affected. Drivers in the southwest of England, for instance, could pay nearly four times as much as those in London, with an average annual cost of £110.25 compared to £33.09 in the capital. This disparity has raised concerns among critics that the tax could create another barrier to electric vehicle uptake, especially in rural areas. The Electric Car Scheme, a leasing group that conducted the analysis, warns that the tax could discourage EV adoption at a time when the government is trying to transition ownership from 'early adopters to the mass market'. The research, based on 2024 data, also highlights that people living in smaller, rural towns and villages near cities will pay the most, with an average annual cost of £156.51, while those in urban areas will pay £76.02. Despite these concerns, the government spokesperson maintains that the new system is fair, as electric vehicle drivers will pay half the duty of petrol cars, making it still the cheaper and greener choice.
