Question to the HM Treasury:

To ask His Majesty's Government how they intend to replace revenue from fuel duties in the light of the increasing adoption of electric vehicles.

As more people choose to switch to cleaner, greener electric cars, the Office for Budget Responsibility (OBR) has forecast fuel duty receipts will decline to around half current levels (around £12 billion) in the 2030s in real terms. Receipts are then expected to approach zero by 2050.

That’s why in the Budget in 2025 the Government announced the introduction of Electric Vehicle Excise Duty (eVED), a new mileage charge for electric and plug-in hybrid cars, which will come into effect in April 2028. All UK-registered electric and plug-in hybrid cars will pay eVED, but the rate of eVED paid by electric vehicle drivers will be half the 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.