Transport Minister Heidi Alexander publicly stated there were “no proposals to introduce a national pay-per-mile scheme”, a message intended to calm speculation about new driving taxes. However, as reported by GB News, sources later clarified that the minister had “misspoken”, despite ongoing Treasury discussions about a potential 3p-per-mile charge for electric vehicles from 2028.
Government denial followed by rapid clarification
GB News reports that Alexander’s initial statement was meant to dismiss the idea of a nationwide road-pricing scheme for all vehicles. But shortly afterwards, government sources said she had “misspoken”, as the Treasury has not ruled out a targeted EV-specific mileage charge.
This leaves drivers with a mixed picture:
- No national, all-vehicles pay-per-mile system
- But a possible EV-only per-mile charge, reportedly at 3p per mile, still under active consideration
According to GB News, this levy could be introduced from 2028 as the government seeks to replace lost fuel-duty revenue as more drivers switch to electric cars.
DM News Commentary
Taxi and private-hire drivers have every right to feel frustrated. For years, the industry has been pushed toward electric vehicles — through policy pressure, emissions rules, and incentives. But just as drivers commit to expensive EVs, the benefits are slowly being stripped away.
A per-mile tax hits high-mileage drivers the hardest. Private-hire and taxi workers regularly clock 40,000–70,000 miles a year. Even at 3p per mile, that’s an extra £1,200–£2,100 a year in new costs — on top of rising insurance, licensing fees, and charging prices.
Mixed government messaging also makes business planning extremely difficult. Operators considering EV fleets need clarity years in advance, not contradictions followed by “misspoke” corrections.
If the government wants the industry to invest in greener transport, it must provide certainty — not confusion.
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