BREAKING EV NEWS: 2025 UK Budget and EV drivers

The Chancellor's Autumn Spending plan 2025 is a genuine mixed bag for EV motorists – giving with one hand, taking with the other. In this episode, Ginny and Batch unpack the most significant announcements and what they mean for your running costs, your next automobile, and the UK's switch to electrical.
Are EV chauffeurs being unfairly targeted, or is this a reasonable method to money Britain's roadways in an electrical future? We take a look at the winners and losers, how pay-per-mile will be handled – and whether the additional grants and charging financial investment genuinely balance things out.

Top headlines from the Spending plan:

⚡ Pay-per-mile tax is coming for EVs from April 2028 (3p per mile for pure EVs; 1.5 p for plug-in hybrids).
⚡ ₤ 1.3 bn boost to EV discounts via a revitalized plug-in/ electric car grant bundle to keep upfront prices down.
⚡ ₤ 200 million for UK charging infrastructure, aiming to speed up rollout and improve gain access to throughout the country.
⚡ Increased threshold for EVs in the luxury vehicle tax (the Expensive Automobile Supplement), pulling more mainstream EVs out of the additional charge zone.

Got a question or a take on the Budget plan? Drop it in the remarks– we'll reply and keep you updated as more detail lands.

#Budget 2025 #UKBudget #ElectricCars #EVs #EVCars #ElectricVehicles #PayPerMile #RoadPricing #PlugInCarGrant #EVDiscounts #ChargingInfrastructure #EVCharging #LuxuryCarTax #ExpensiveCarSupplement #Motability #EVDrivers #CarTax #RunningCosts #UKCars #Electrifying #GinnyBuckley #FutureOfDriving #NetZero #CleanTransport

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38 responses to “BREAKING EV NEWS: 2025 UK Budget and EV drivers”

  1. @williameveritt3464 Avatar
    @williameveritt3464

    Give you grant to buy your ev then raise a tax on them.

  2. @colincook7995 Avatar
    @colincook7995

    Well, im going to swap my EV in for a gas guzzling SUV, we try to do the right thing solar panels etc so we can fuel our own car and now as a sign of gratitude we are being taxed for our effort.

    1. @Train64693 Avatar
      @Train64693

      Get a Range Rover can’t go wrong

    2. @jamesp.1784 Avatar
      @jamesp.1784

      ​@Train64693in 2 years I’m dumping my ev, going for a Defender❤

  3. @b280c_2 Avatar
    @b280c_2

    Should have scrapped duty on fuel and put pay per mile for all fuel types, EV, petrol, Diesel, hybrid etc…fairest way for all. I own an EV and I have no problem with the pay per mile but segregating fuel types is unfair. Question? Will the luxury car TAX end or will it still be in addition to?

    1. @theelectrictransition Avatar
      @theelectrictransition

      Yep, luxury tax is in addition to this per mile tax. However, the good news is that the threshold for luxury car tax was increased to £50k. We don’t know if that gets applied retrospectively, but hopefully so – namely for cars bought from April 25 onwards

    2. @MW-uh1xv Avatar
      @MW-uh1xv

      It will come. This is an excuse to get that ball rolling

    3. @b280c_2 Avatar
      @b280c_2

      @theelectrictransition it’s an absolute disgrace that this TAX exists penalising those who can afford a higher value vehicle with money they have already been TAXed on but what really boils my p*ss is they back dated it to April 2017!! What’s to say that they couldn’t back date a charge on anything else.. like pension, ISA etc when they feel like it. Disgraceful.

    4. @theelectrictransition Avatar
      @theelectrictransition

      ​@b280c_2 Oh wait, the luxury car tax was backdated you mean? Oh crickey, is that right? I didn’t realise that.

  4. @stevencampbell1150 Avatar
    @stevencampbell1150

    So they give a grant and then they charge you extra to drive it on top of the road tax! I agree that the EVs should be charged road tax but to be charged per mile on top of that is mental. The only hybrids affected are plug in hybrids as mine isn’t one of those as it’s a Toyota Corolla it means I escape that but where is the incentive now to go EV? We don’t all want hideously restricted mileage leases where it costs a fortune per month for the privilege of going EV, I was on the fence about EVs but now I’m completely off the notion as a result of this.

  5. @DFID7Tourer Avatar
    @DFID7Tourer

    We all need be grown ups as eventually EV drivers were going to be taxed and asked to contribute more to the budget for roads and services, be thankful it is not a live tracking system.
    The issue of course is that for new adopters or people thinking about getting an EV it is a disincentive for changing platforms. For those of us already on the EV journey we know how much cheaper fuel costs are for EVs (for me ,2p per mile Vs nearly 16p per mile for my previous ultra efficient diesel). It maybe that there was a better way of implementing it or maybe disincentivising ICE car costs, why they did not place this same tax on ICE cars in 3 years time as well to balance it off is a mystery.
    We need to keep increasing EV ownership and not put the brakes on, maybe a better idea would have been a graduated cost per mile cost based on car size, efficiency or for Cars built in the UK supporting UK tax payers. This would incentivise people to look seriously as the most effiicent and right sized vehicles.

    1. @theelectrictransition Avatar
      @theelectrictransition

      I think your idea of also applying it to ICE cars is a great one – and surely the opposition will use that to win political brownie points. It does make sense, therefore, that this sort of move will come eventually, even if indirectly through the raising of fuel duty

  6. @pauldenney7908 Avatar
    @pauldenney7908

    If you aren’t going to bring in pay per mile till 2028 then don’t talk about it until the Autumn statement in 2027. This will put some people off and slow the transition to EVs. This is a repeat of Starmers “things will get worse before they will get better” statement. It’s just incompetence, who the hell are advising the government, Shell, BP?

    1. @theelectrictransition Avatar
      @theelectrictransition

      I understand how you feel for sure. However, I appreciate that they are telling people well in advance. It always seems fairer to me to let people know of changes in advance, so that they can plan for them.

      Personally I would like to see policy costs moved from electricity to gas, but it’s super controversial, as that could disadvantage some of the least well off. Therefore, stating it 5 or 10 years out seems a reasonable way to do it – use taxes to indicate the direction of travel, but give people time to take that into account in their planning.

      Despite this preference, I am acutely aware that some people live hand to mouth, and no matter what notice we give them, cannot change their direction because they simply don’t have money to invest in anything. It’s very tricky

    2. @brianwalker1383 Avatar
      @brianwalker1383

      No just your normal jealous type people

  7. @MadeInLuton77 Avatar
    @MadeInLuton77

    Pence per mile!!! Nightmare! Will put people off of going EV. Cars will be clocked/have mileage blockers. How about the clean air and health improvements EV’s offer. This saves the NHS a fortune, but no, let’s hit EV drivers with a tax and freeze fuel duty!! EV’s cost more to buy and insure, so it’s up front costs that you get back over the ownership. 😡🤬😡🤬

    1. @davidpearn5925 Avatar
      @davidpearn5925

      You don’t pay the tax in your petrol. Who will pay for the shortfall ? The Torys got you the Brexit disaster.

  8. @o0alias0o Avatar
    @o0alias0o

    I drive an e208 and I have NO access to home charging. It has been actually reasonable although when I do make longer trips the fast public charging hurts my wallet more than what my petrol cost.

    They need to at least reduce public charging VAT to 5 percent instead of the 20 percent to match home charging.

    They also should be letting EV users with no home charging exemption from the 3p per mile tax.

    What i find silly is EV will be paying 3p per mile tax, but what if you charged using your own solar energy? Should people be taxed on the energy they had paid to produce with their own solar? Strange.

    Much too soon for this 3p per mile tax. Yikes

  9. @Gary.limbless.veteran Avatar
    @Gary.limbless.veteran

    As a motability user, i agree that the system needs a good look at. But, i agree with batch that the price should govern the vehicles availability and not just the brand. If I want to pay the advanced charge to get a more luxurious vehicle why should I have to miss out due to the government mishandling almost everything they touch. When my contract is up with this motability vehicle i should be able to purchase this rather than it being sent to auction, motability need to start promoting second hand vehicles rather than just putting used vehicles to auction. Just my thoughts on this. Well done for throwing this show together so quickly. Thanks guys.

  10. @neilhawkins7021 Avatar
    @neilhawkins7021

    I’m not happy because my little Insta is going to be taxed at the same rate as a huge SUV

  11. @bellsteve1 Avatar
    @bellsteve1

    An MOT tester wont need to take the mileage!! It’s just checking in at the centre and an administrator would do that surly

    1. @theelectrictransition Avatar
      @theelectrictransition

      That’s a fair comment, although it does depend on the size of the business as to how many staff they can afford – whether they have any administrators at all, for example.

    2. @wynhughes9072 Avatar
      @wynhughes9072

      How will this work on cars that are only 1-3 years old?

    3. @bellsteve1 Avatar
      @bellsteve1

      This would be a site visit to input the mileage for cars up to 3 years old only to input the mileage, from then on, every MOT carried out would have the mileage recorded, I have had a an EV for 4 years and actually I think its been easy street for EV owners, it shouldn’t put off buying an EV though, am I right in saying VAT may come off EV charging stations too ?

  12. @markstokes2809 Avatar
    @markstokes2809

    she says she wants it to be fair, how then will a dirty diesel with car tax of £20 PA fair up against a CLEAN Ev

    1. @Missy1gonk Avatar
      @Missy1gonk

      The govt is unfreezing the freeze on fuel duty next year.

  13. @SLF9978 Avatar
    @SLF9978

    Well I was investigating the possibility of changing to full EV, even getting costs for having a home charger fitted and board upgrade to do so, then this ridiculous government move the goalposts and I’m completely off the idea. If they really want people to change over there should be some incentive to do so not constant obstructions. I’ll be sticking with my ICE.

    1. @theelectrictransition Avatar
      @theelectrictransition

      Yeah, that’s a logical conclusion, thanks for your honesty. That’s interesting to hear.

      I suspect we will see fuel duty rise in the future as a counter to this. However, the fact that the 5p per litre reduction we got on fuel from April 2022 has been extended by 6 months is a huge surprise to me, and a temporary counter to my counter argument!

    2. @PorthLlwyd Avatar
      @PorthLlwyd

      Why do incentives have to be financial? Why do you not make the switch for environmental reasons? Lots of early adopters have taken a huge financial hit to get EV prices to where they are today and quite frankly the cost of running an EV is still cheaper than an ICE car.

  14. @ColinAdams-j3q Avatar
    @ColinAdams-j3q

    Here’s a thought, why not tax weight of vehicle? Say 1p per miles for lightest vehicle, and then 3p for the next and so on, this would seem fair and encourage people to get smaller and more efficient vehicles.just a suggestion!

    1. @theelectrictransition Avatar
      @theelectrictransition

      Yeah, that would be a good improvement as far as I’m concerned. EVs are efficient, but I’d still like taxation to encourage the best efficiency we can achieve

  15. @mccorrisken Avatar
    @mccorrisken

    Was this officially the closest yet, to being an Electrifying half hour 😂.

  16. @jonevansauthor Avatar
    @jonevansauthor

    Stop accepting the premise of the pay per mile tax! We have known governments would probably do it. That does NOT mean it’s a good idea and it never has been. It’s silly to add regressive taxes, especially to the behaviour we want to encourage. It’s insanity. It was not inevitable, it was a stupid move we could see coming, much like failing to tax wealth and instead taxing work.

  17. @johnpurdon8252 Avatar
    @johnpurdon8252

    The pay per mile just doubled my fuel cost. Acceptable if ev’s caused road damage, but lorry and buses are the culprits. Future increases will be remorseless in the years ahead. Any announcement on road quality value for money? No, just more cost. If I pay for something, what can I expect for my money? If I pay road funds, will there be less accidents, reduced congestion or a decent surface?

  18. @RonStanley-u4h Avatar
    @RonStanley-u4h

    Everything you said is quite right. It is very perplexing. I was particularly struck by your comment on the grant being for the benefit of the car manufacturers.
    I am a Motability customer who drives an electric car and have this evening received a very grown up email from Motability saying how they now need to review the taxation (fuel duty) situation to keep the scheme as affordable as possible for customers. It is reassuring to how quickly they have responded and are already looking at what can be done to keep the scheme sustainable and affordable.

  19. @gordonmackenzie4512 Avatar
    @gordonmackenzie4512

    £200 million for a charger network will be England 🏴󠁧󠁢󠁥󠁮󠁧󠁿 only. Scotland has already done this, dating back over 12 years ago. It’s called Chargeplace Scotland.

    1. @SigmaJAD Avatar
      @SigmaJAD

      Chargeplace Scotland chargers are commonly grim though. Very very disappointing availability, often out of order

  20. @ademason8975 Avatar
    @ademason8975

    It is totally unfair to single out EV drivers for a new tax especially a per mile tax , it must apply across all vehicles and the most polluting should pay many times more than they do now
    how about 1p a mile for an EV and 10p / mile for petrol/diesel ?

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