Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what assessment she has made of the potential impact of changes to electric Vehicle Excise Duty on the use of internal combustion engine vehicles.

As announced at Budget 2025, the Government is introducing Electric Vehicle Excise Duty (eVED) from April 2028, a new mileage charge for electric and plug-in hybrid cars, recognising that electric vehicles (EVs) contribute to congestion and wear and tear on the roads but pay no equivalent to fuel duty.

The Government is also committed to ensuring that driving an electric vehicle is an attractive choice for consumers; the eVED rate paid by electric car drivers will therefore be half the equivalent fuel duty rate paid by the average petrol/diesel driver, meaning 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 has set out the expected impacts of eVED and other Budget measures, including Exchequer and behavioural impacts, in the Budget 2025 Policy Costings document at GOV.UK.

There are uncertainties, but the number of internal combustion engine cars is still expected to fall over time as electric car sales increase; EV sales are forecast to more than triple from nearly 0.5 million sales in 2025/26 to around 1.6 million by 2030/31.