The BVRLA has urged Government to apply the same logic behind this week’s fuel duty freeze by dropping its plans to introduce a pay-per-mile charge on electric vehicles from 2028.

Responding to the Chancellor’s decision to extend the 5p fuel duty cut until the end of the year, BVRLA chief executive Toby Poston said: “Freezing fuel duty is the right call at a time when rising global tensions are already pushing up costs for households and businesses. Drivers and fleets need stability, not more financial pressure.”

But he urged the Government to take the same approach with electric vehicles.

“The new eVED road pricing charge on EVs risks slowing the transition just as more drivers are motivated to make the switch. This is the moment to back affordable zero-emission motoring, not make it more expensive.”

The trade body has also coordinated an open letter to Treasury minister Dan Tomlinson MP, co-signed by organisations from across the rental, leasing, fleet, remarketing, finance, logistics and mobility sectors.

The signatories warn that the proposed eVED scheme could undermine EV adoption and place major operational and financial burdens on the businesses driving electrification.

The letter argues that the proposed tax, due to be introduced in 2028, comes at the same time as a significant tightening of the ZEV mandate and risks reducing EV demand just as the market needs acceleration.

Signatories are calling on Government to delay implementation until at least 2032, rethink the scope of the scheme and redesign the system to reduce unnecessary administrative costs and operational complexity.

The group says it supports EV drivers paying a fair contribution towards road use, but warns that the current design risks adding hundreds of millions of pounds in compliance costs while slowing the transition to zero-emission motoring.