Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what the evidential basis is for the determination on whether to include the proposed (a) implementation date, (b) scope and (c) mileage tariffs for the Electric Vehicle Excise Duty scheme in the consultation; and what assessment she has made of the impact of predetermining such elements on electrification targets in the vehicle rental and leasing sectors on the scheme.

The Chancellor considers a wide range of evidence when taking decisions on tax policy.

The eVED consultation published at Budget 2025 sought views on aspects of the tax design and implementation. As part of the consultation, the government sought evidence on the impact of the proposed approach for eVED collection on fleets and leasing businesses. The consultation has now closed. The Government is analysing the responses in detail and will respond in due course.

The Government has set out the expected impacts of eVED and related Budget measures in the Budget 2025 Policy Costings document at GOV.UK. New electric car sales, of which the rental and leasing sectors comprise a significant proportion, are forecast to more than triple from nearly 0.5 million sales in 2025/26 to around 1.6 million by 2030/31. According to figures set out in the OBR’s Economic and Fiscal Outlook, the estimated overall net impact of eVED and other related Budget measures is 120,000 fewer new EV sales across the forecast period, representing only 2% of total new EV sales.