AMP EV’s Insight into The Autumn Budget Announcement
Written by AMP EV’s MD, Alasdair Croft
Firstly, let’s start with the statement that the media will likely seize and concentrate on when it comes to EVs and it’s probably a factor that many will consider most when switching to EV.
- EV Pay Per Mile charges are to be introduced from April 2028. This is set to be a 3p per mile charge for Electric Vehicles and 1.5p per mile for PHEVs.
This was an inevitable step as the government needs to offset the decrease in fuel duty when people choose EVs over petrol or diesel cars. Many people choose EV as we know it is better for the environment, but cost is always a major factor so let’s crunch numbers to get a rough idea of how the added road tax measures up.
| Petrol average 36 MPG
10,000 miles |
Diesel average 43 MPG
10,000 miles |
EV average 3.5 MI/KWH
10,000 miles |
| £1,709 | £1511 | £200
(charged home – overnight discount)
£752 (regular home electricity rate)
+ £300 (3p/mile tax)
= £500 OR £1052 |
Still big savings to be had when it comes to the running cost of an EV. Not to mention, additional savings in servicing due to the costs of maintaining EVs being significantly lower than an ICE car.
It will be interesting to see how the road tax is going to be implemented. Victoria, Australia was the first jurisdiction in the world to try this tax per mile whereby photos of the odometer needed to be submitted each year to calculate the costings. However, with “exempt” claiming mileage that was hard to evidence, it simply couldn’t be accurate. Eventually, the legislation was scrapped. One would assume that EV owners in the UK will enter an estimation for the year’s mileage and when the car goes in for its subsequent MOT that this will be checked out and costs calculated but at this stage the implementation process is unclear. Nevertheless, this does leave open questions about charging at home, specifically from solar panels. If the owner has made that energy, do they still pay tax on it or can it be deducted?
Good news in that the premium car tax has raised the threshold band to £50,000 for EV cars. Therefore, in real terms, it means more savings for EV. For example, a Tesla model Y (£49,900) car tax would have been £600 per year as it would have incurred the premium car tax. Now, with the changes made to annual car tax, it will only be £195 like other cars.
Lots of questions as to how the road tax will work but, essentially, EVs cannot be exempt from road tax forever, we had a good run. Now, we must see this as a sign that EVs are becoming ‘the norm’ and push towards our net-zero goal knowing that it is still the most sustainable, environmentally friendly and cost-effective way to drive.
- The government will review the cost of public EV charging, looking at the impact of energy prices, wider cost contributors, and options for lowering these costs for consumers. The review will start in Q1 2026 with a report due by Q3 2026.
A very welcome review for improving the driver’s charging experience and allowing those who cannot charge at home better options when using public chargers. The late Quentin Willson was a champion for the Fair Charge campaign to equalise VAT rates between home and on the road charging. We’re particularly pleased to see the actions of Housing Associations such as Jigsaw Homes and Platform Housing who have chosen to make their EV charge spaces available to local residents outside of their business hours creating further options for those without the facility to charge at home.
Additional announcements impacting EVs include:
- £100m additional funding for domestic and workplace chargers. This likely extends the Workplace Charging Grant and is fantastic news for those looking to develop their workplace infrastructure.
- 100% business rates relief for EV chargers and EV only forecourts. Measures to encourage this development can only be a step in the right direction.
- Electric Vehicle car grant has had a further £1.5 billion added and has been extended to 2030. Again, for new EV purchasers, this supports the transition by offsetting the initial impact.
If the Budget’s EV and infrastructure related sections mean potential expansion for you, transitioning your fleet or adding chargers to your workplace, you will need charging specialists that can supply, install, operate and maintain your charge points all in one place. Pop us an email at enquiries@ampev.co.uk if you’d like more information on how AMP EV can help you.