In a report released today, the Resolution Found has detailed plans for a national, per-mile Road Duty system should be introduced that leads to EV drivers paying 6p per mile (plus VAT) from 2027, when one–in–six of all car miles are expected to be electric.
The foundation recommended that it be implemented through a GPS system, building on existing technology while drivers of fossil–fuelled vehicles will continue to pay Fuel Duty.
The report also recommended introducing Congestion Charges, reforms to VED and reducing VAT on public chargers from 20 per cent to 5 per cent
Though, while industry professionals welcome the policy recommendations from the Resolution Foundation, some have called the move ‘premature’.
The Association of Fleet Professionals (AFP) has released a statement urging a slower, more measured policy.
Paul Hollick, AFP chair, said: “At the AFP, we’ve been saying for some time that there needs to be a serious public discussion about the future adoption of road pricing and, to that end, we welcome the Resolution Foundation’s contribution.
“The main point that we would make in response is that it is very much too early, given the current situation regarding electric car and van adoption, to be implementing these kinds of charges yet.
“In our view, they should take effect around the end of the decade, in line with the 2030 EV new car production deadline.
“Really, what we would like to see is a detailed and informed dialogue lead by the Treasury on this subject, with input from many different parties, that results in a shift towards road pricing over time, with rates set to take effect over a number of years.”