"Raising fuel duty has become politically contentious since the first freeze announced by the coalition government in 2010 but the eventual rise will help maintain a differential in running costs to encourage the transition to electric cars, when the new mileage-based levy on EVs takes effect from 2028-29. Fuel duty in effect costs about 6p a mile on average for cars."
"The additional electric vehicle excise duty (VED) will be payable with existing VED or road tax at 3p a mile for fully electric cars or 1.5p for plug-in hybrids. Reeves said it would help double road maintenance funding in England over the course of this parliament. She pledged to accelerate the rollout of public EV charging and exemptions from business rates, but disappointed some by not lowering VAT on public charging to meet the domestic rates for electricity."
Fuel duty will be frozen in April at 52.95p per litre for petrol and diesel until September 2026, reversing the temporary 5p cut in stages from September. The freeze marks a sixteenth consecutive year without an increase and is intended to preserve a running-cost differential ahead of a mileage-based levy for EVs. A new EV mileage charge of 3p a mile for fully electric cars and 1.5p for plug-in hybrids will be payable alongside existing VED from 2028-29. The freeze costs an estimated £2.4bn next year and £900m annually thereafter, and the EV charge is projected to raise £1.1bn in 2028-29 and £1.9bn by 2030-31. Measures aim to double road maintenance funding in England and accelerate public EV charging rollout, while VAT on public charging remains unchanged.
Read at www.theguardian.com
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