carwow on forthcoming Autumn Statement regarding removal of EV exemption from road tax

On the rumours that the Government will remove the EV exemption from road tax in Thursday’s Autumn Statement, Hugo Griffiths, consumer editor at carwow, the UK’s online car marketplace, said:

“It seems inevitable that EV drivers will be asked to pay road tax sooner or later. Yet the rumours that Thursday’s statement will include the ending of electric car exemption from road tax, if proved true, will come as a nasty shock nonetheless.  

“Fundamentally, there remains a much more expensive elephant in the room: road tax brings in a mere £7bn to Government coffers each year, whereas duty from petrol and diesel raises four times that amount.

“With just seven years to go until the ban on the sale of new petrol and diesel cars begins, the Government must stop burying its head in the sand, treat its citizens like adults and explain precisely how it intends to raise £28bn each year once fuel duty revenue dries up. 

“The Transport Select Committee has previously said that it has ‘not seen a viable alternative to a road pricing system based on telematics.' 

“Telematics devices are already commonplace for young drivers with ‘black box’ insurance policies, but for the Government to electronically track motorists’ individual journeys as they go about their daily lives brings with it serious concerns over privacy rights. This is clearly going to be a difficult conversation to have - but it’s not going to get any easier as we near 2030. 

“Tweaks to the current system aren’t going to cut it. Sweeping changes, which EVs require, need years to plan for and require deep collaboration from the outset. The Treasury needs to be bold, brave and honest, and clearly set out an equitable plan for the future of road tax that works for everyone.”