Deloitte assesses Autumn Budget impact on EV drivers
Analysis by Deloitte has found that changes announced in the Autumn Budget will cost drivers of cheaper electric cars but could see those with more expensive models £900 better off.
Chanceller Rachel Reeves announced a new pay-per-mile tax for electric vehicles, and increased the threshold for the Expensive Car Supplement from £40,000 to £50,000.
Simon Down, automotive tax director at Deloitte, said: “The electric vehicle mileage charge, due to come into effect in April 2028, will mean an increase in the running costs of electric vehicles, albeit not a significant impact on consumer finances.
“Based on an average annual mileage of 7,100, the charge would cost electric vehicle drivers about £213, and plug-in hybrid electric vehicle drivers about £107 per year respectively.
“An increase of £213 per year would equate to a two per cent increase in the overall cost of funding a typical fleet car.”
Expensive Car Supplement
Down continued: “The proposed changes to the threshold for the Expensive Car Supplement (ECS) for vehicle excise duty in 2025 will see the threshold rise to £50,000 from £40,000. This can save drivers £440 per year and applies from years two to five of ownership. Over a typical four-year lease, this will save consumers £1,320.
“When combined, if a consumer’s electric vehicle is valued below £40,000, or over £50,000, they will see a small cost increase from April 2028.
“However, if the electric vehicle costs between £40,000 and £50,000, this Budget means the consumer may be about £900 better off over the four-year lease, saving £1,320 in ECS but paying an extra £426 in electric vehicle mileage charges.”
