Silviya Barrett has a point.
Labour’s proposed pay-per-mile tax relies on a convenient fiction. The Campaign for Better Transport sees through it. They argue that fairness requires tracking technology, not guesses.
The current proposal charges Plug-in Hybrid (PHEV) drivers 1.5 p per mile. This sits on top of the annual road tax. It’s half the rate full Electric Vehicle (EV) owners will pay. The Treasury likes this logic. They assume PHEVs save fuel compared to petrol guzzlers. They assume hybrids cover half their distance on electric power.
That assumption is shaky.
If a driver uses EV mode only 20 percent of the time? They end up paying too much in electronic Vehicle Excise Duty (eVED). Why? Because they’re already covering fuel duty for that remaining 80 percent via petrol. The math breaks down. The system penalizes reality with theoretical averages.
Tracking the truth
The automotive industry proposes a fix. Telematics.
Cars can already transmit mileage to a central server accurately. No need for rough annual estimates. No need to wait until year-end to settle up or claim rebates.
“This is the benefit of using a telescimatics-based system as it’s more accurate,” Barrett told Auto Express at a Parliament panel. It’s about precision. You’d pay only for the electric miles you actually drive. The rest stays in your pocket, since fuel duty covers the petrol burn.
You might wonder: Do we need new hardware for this?
No. Every car sold new since 2018 has had in-built SIM cards and GPS mandated by law. The tech is there. Sitting in the dash. Waiting to be used.
The barrier isn’t engineering. It’s psychology.
“The majority” of EV drivers in an EVA England study say they want to pay their fair share. Noble sentiment. But only a quarter support telematics tracking. Privacy fears loom large. People hate the idea of their cars reporting back to a government server.
Border issues
Sometimes you have to use location data though.
If you live near the Irish border, or you drive abroad for work, self-reported odometer readings fail. A simple mileage check can’t distinguish between a London commute and a trip to Dublin. You shouldn’t pay UK eVED for miles driven on Irish roads.
A GPS-enabled system can sort this out. Self-submission systems can’t. They are too blunt instruments. Too easy to game. The proposed rebate system involves giving drivers “credits” instead of cash for overpayments. It feels punitive. It invites fraud.
The price of delay
The government has little patience. Fuel duty revenue is collapsing. HM Treasury forecasts a £12 billion deficit by 2030 if something doesn’t change.
eVED looks like a necessary evil. A tax hike wrapped in sustainability logic.
EVA England thinks it’s moving too fast. Vicky Edmonds, their CEO, wants the 2028 start date pushed to 2030.
“We’re calling for the scheme to be delayed… redesigned so drivers pay based on actual usage, not estimates. And introduced alongside action on charging costs.”
Two years to iron out the glitches. To calm the privacy panic. To figure out how to charge people for hybrid cars that are basically two engines wrapped in one metal box.
The deadline looms. The trackers are already inside. We just have to decide who gets to look at the data.
And who ends up footing the bill? 📉🚗
