The proposed introduction of a per-mile charge for electric vehicles (EVs) has been met with fierce criticism from industry experts. While there’s general agreement that EVs should contribute fairly to road maintenance and infrastructure costs, the pay-per-mile model is seen as flawed and potentially damaging in its broader implications.
The primary concern centers around the potential creep of this system beyond just EVs. Industry voices fear that if implemented, a per-mile charge could gradually expand to encompass all vehicles, ultimately leading to a complex web of differentiated pricing based on factors like vehicle type, time of day, and even chosen route. This echoes concerns raised two decades ago by former Prime Minister Tony Blair, who had envisioned a similar system.
One industry representative argues that the current Vehicle Excise Duty (VED) – a fixed annual tax on vehicles – provides a simpler and more equitable foundation for collecting road user charges. Their suggestion: integrate an additional flat rate based on mileage directly into existing VED for EVs. This approach could be extended to all vehicles by eliminating fuel duty and VAT on gasoline, offsetting this revenue loss with the added EV charge. They estimate that such a system would likely amount to around £250 per year for the average EV driver.
The crux of the argument is transparency and fairness. Currently, drivers of internal combustion engine (ICE) vehicles contribute significantly more to road funding through fuel duty and VAT, which collectively exceed £600 annually for someone driving 8,000 miles at an average fuel efficiency of 40 mpg. In contrast, EVs often pay minimal tax – a mere 5% VAT on charging costs if charged overnight at low rates – making the current system feel skewed.
The industry representative further suggests that framing the EV charge as a monthly payment might make it more palatable for consumers. The psychological impact of spreading out a cost over time seems to be less jarring than facing a large annual sum upfront.
Ultimately, finding an equitable and sustainable funding model for road infrastructure is paramount. However, implementing complex and potentially intrusive per-mile charges raises significant concerns about practicality and fairness.
