Chancellor of the Exchequer Rachel Reeves set out tax-raising measures worth up to £26 billion in the Autumn Budget on 26 November 2025.

The increases will be achieved through a range of measures, including extending the freeze on Income Tax thresholds for a further three years.

Electric Vehicles

 

The government is introducing Electric Vehicle Excise Duty (eVED), a new mileage charge for electric and plug-in hybrid cars, which will come into effect from April 2028. Drivers will pay for their mileage alongside their existing VED.

The government will work closely with industry and motoring representative groups on the delivery of the new tax.

The tax paid by EV drivers will be around half the fuel duty rate paid by the average petrol/diesel driver, with a reduced rate for plug-in hybrid drivers. When eVED takes effect in April 2028, an average EV driver will pay around £240 per year or £20 per month.

Other vehicle types, such as vans, buses, motorcycles, coaches and HGVs, will be out of scope of eVED when it is introduced, with the transition to electric power for these vehicle types being currently less advanced than for cars.

The Daily Telegraph reported that Electric car drivers will be forced to turn up at garages for annual mileage checks under Rachel Reeves’ new pay-per-mile tax.

Motorists will have to arrange odometer readings at MOT centres so that the Government can verify self-reported mileage numbers, consultation documents show.

The requirement will exist even for owners of new cars, who do not need to arrange MOTs for the first three years of a vehicle’s life.

Mark Field, IAAF Chief Executive, said: “The budget does nothing to support aftermarket businesses who are the largest element of the UK automotive sector.

“We’re an aftermarket, not an afterthought and short term thinking by successive governments has now meant £4bn of grants to sell Electric Vehicles that not everybody wants or can afford. Even more remarkable is this government’s plan to charge the ones that do, with a pay per mile tax on EVs. This will further reduce EV adoption.

 

“Instead of dumbing down EV adoption by subsidising the price of cars, we should be supporting businesses and programmes that deliver on the sensible notion that a technology neutral approach to future mobility is the best way to ensure effective consumer choice and affordable motoring.”

Day one rights on employment

 

The Government also announced on Thursday that it was abandoning plans to allow employees to sue for unfair dismissal on day one of their employment.

https://www.gov.uk/government/collections/budget-2025