Almost half of UK motorists say new electric vehicle tax rules have made them reconsider going electric.
According to research from Close Brothers Motor Finance, 45% say that additional taxes for electric vans and cars would put them off going electric.
There are just two days to go until the Autumn Budget, where the government is expected to outline further details of its proposed pay-per-mile road charging system. Although early indications suggest van drivers will be exempt from road charging, growing uncertainty about future running costs is already denting confidence across both the car and van markets.
The survey follows major changes introduced on 1 April 2025, which removed most EV exemptions from Vehicle Excise Duty (VED). Electric cars are now subject to a £10 first-year fee and an annual £195 standard rate from the second year.
In addition, EVs priced over £40,000 face an Expensive Car Supplement of £425 a year for five years, taking the total annual cost to £620.
Close Brothers’ data found that one in five drivers (22%) no longer plan to buy a new EV, while almost a quarter (24%) now intend to opt for a used electric vehicle instead.
John Cassidy, managing director of sales at Close Brothers Motor Finance, said: “Ahead of the Autumn Statement, these findings show that while drivers are keen to switch to electric, recent tax changes are creating uncertainty and slowing adoption. Schemes like the Electric Vehicle Grant can help, but the high upfront cost of new EVs remains a major barrier, and the list of qualifying vehicles is short.”
He added: “The introduction of a pay-per-mile charge could further complicate matters. Even if van drivers are exempt, mixed fleets and self-employed tradespeople who rely on both cars and vans are understandably anxious. Confidence is key to the electric transition, and right now, uncertainty around future taxation risks stalling progress just as momentum is needed most.”
The proposed per-mile charge, which is intended to replace lost fuel duty revenue as drivers switch to electric, could vary by vehicle type, distance, and time of day.
However, industry analysts warn that without clear exemptions and long-term consistency, it risks undermining public trust in EV affordability and discouraging businesses from electrifying their fleets.
