By James Browne and Isabel Atkinson

As the Chancellor prepares for a difficult second Budget, reports suggest that a new pay-per-mile charge for EVs is being considered.

 This move is long overdue. With 1.7 million EVs now on UK roads – around 5 per cent of the total – the question of how to tax them fairly and sustainably has become increasingly urgent.

A well-designed per-mile system could strike the right balance between supporting the green transition and safeguarding our public finances.

Fuel duty currently raises more than £29 billion a year – 2.5 per cent of total tax revenues or around 1 per cent of GDP. 

But these revenues are set to halve by the late 2030s and essentially disappear entirely by 2050 as more drivers switch to electric, which would leave a significant hole in public finances.

But this is about more than money. Although EVs don’t generate tailpipe emissions, EV drivers still cause wear and tear........

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