Question to the HM Treasury:

To ask the Chancellor of the Exchequer, whether her Department has made an assessment of the potential implications for its policies of (a) per-kilometre road charging schemes for electric vehicles in other countries, including Iceland and (b) Iceland’s EV market share following the introduction of per-km charging for electric and hybrid vehicles.

The Government considers international evidence when developing tax policy, including approaches taken by other countries, including Iceland, to mileage-based charges for electric and hybrid vehicles.

Unlike in some other countries where EV purchase incentives were reduced alongside the introduction of mileage charges to replace fuel duty, the UK is expanding these incentives to encourage further uptake. 80% of eVED revenue from the first three years is being reinvested to extend support for EVs and the auto manufacturing industry.

In addition, the eVED rate paid by electric car drivers will be half the equivalent fuel duty rate paid by the average petrol/diesel driver, ensuring that it will still be cheaper to own and run an EV for the majority of EV drivers, with a reduced rate for plug-in hybrid drivers.

The Government is also helping drivers and the automotive sector make the switch to EVs through investing over £7.5 billion out to 2035, including £2 billion for the Electric Car Grant, and further support for chargepoint rollout.

There are now over two million EVs registered in the UK and March was the biggest ever month for EV sales in the UK.