Committee publication · Correspondence · 11 December 2025 · HC 1593
Letter to the Secretary of State for Transport relating to electric vehicles, dated 10 December 2025
From: Transport Committee
Inquiry: Supercharging the EV transition
Summary
The Transport Committee Chair writes to the Secretary of State for Transport welcoming Budget announcements on EV charging infrastructure and grant funding, but raising concerns about the proposed Electric Vehicle Excise Duty (eVED) as a mileage charge from April 2028. She requests clarification on impact assessments, climate modelling, international lessons (particularly from New Zealand), and implementation details regarding odometer versus satellite-based measurement.
Key findings
- Committee welcomes £1.5 billion EV car grant funding and business rate exemption extension for charging points
- Committee expresses concern that eVED mileage charge from 1 April 2028 could deter EV uptake and send mixed signals to consumers during critical transition period
- Government's Budget costings used only literature review and fuel duty data but provided no detailed impact assessment of eVED on EV/PHEV purchase or usage
- Government consultation mentions but does not evaluate alternative international approaches, including New Zealand's similar tax which caused significant EV uptake reduction
- Clarity needed on whether satellite technology (telematics) opt-in approach applies to all vehicles or only EVs and PHEVs
Tone
ProceduralTopics
Key actors
Ruth Cadbury MP, Heidi Alexander MP, Transport Committee, UK Government, Automotive manufacturers
Notable line
“… it would be regrettable were that transition to be jeopardised by consumers receiving mixed signals”
Key Quotes
“I welcome the extension of the business rate exemption for electric vehicle charging points, along with investment in the electric vehicle charging infrastructure and the £1.5 billion allocated for electric car grant funding.”
“I share the concern of our automotive manufacturers, about the implications for EV take-up at this time.”
“… it is crucial that the transition to zero-emission motoring continues at pace to ensure that we meet legally-binding climate commitments, and that it would be regrettable were that transition to be jeopardised by consumers receiving mixed signals”
“What modelling has the Government done on the effect of those impacts on the ability of the UK to meet the 2050 net-zero legal requirement, the Government's plan to ban the sale of new petrol and diesel cars after 2030, and to require all new cars and vans will be 100% zero emission by 2035?”
“… introduction of a similar tax led to a significant reduction in EV uptake”
Source · parliament.uk record ↗