The Government has confirmed a series of changes to its proposed Electric Vehicle Excise Duty (eVED) scheme following a consultation that attracted widespread concern from the fleet, leasing and automotive sectors. While ministers have retained plans to introduce the new mileage-based tax from April 2028, they have accepted several of the industry’s recommendations to reduce administrative burdens, particularly for fleets and leasing companies.
The consultation response acknowledges that fleets will play a pivotal role in the successful operation of eVED and that the original proposals required refinement. However, despite welcoming several practical improvements, industry leaders continue to argue that introducing an additional tax while the UK is trying to accelerate electric vehicle adoption sends conflicting signals to businesses and motorists.
The Government’s response confirms a number of significant changes to the original proposals. Most notably, fleet operators will be able to estimate mileage across their vehicle fleet and make bulk payments, rather than administering every vehicle individually. Leasing and rental companies will also be able to reconcile mileage when vehicles leave their fleet, reducing unnecessary administration.
In another concession to industry, the Government has agreed that rental and leasing companies can become accredited mileage approvers, removing the need for additional annual inspections at MOT testing stations. Digital mileage reporting will also be available from the launch of the scheme rather than being introduced at a later date, reflecting widespread calls for a fully digital process.
However, ministers rejected calls to delay implementation until the electric vehicle market has matured. The Government believes introducing eVED in April 2028 remains appropriate as fuel duty revenues continue to decline with increasing EV adoption. The consultation response reiterates that the new tax is intended to create a sustainable long-term funding model for the UK’s road network while maintaining a fair motoring tax system.
The British Vehicle Rental and Leasing Association (BVRLA), which led much of the industry’s lobbying during the consultation, welcomed the practical improvements but maintained that the policy remains fundamentally mistimed.
Toby Poston, BVRLA chief executive, said: “When it comes to the Wrong Tax at the Wrong Time, eVED, the fleet sector has spoken loud and clear. This poorly designed and scheduled tax would pile extra cost and bureaucracy onto fleets and drivers and eviscerate EV demand just as the Government’s sales targets start ratcheting-up.
“It is great that the government has taken some of the roughest edges off its eVED plans. They’ve accepted that a tax designed around private motorists won’t work for the fleets that are driving the UK’s transition to electric vehicles.
“But there is no avoiding the fact that you can’t create a smooth switch to electric vehicles by making them more expensive to own. The mechanics of the tax may have improved, but the timing is still wrong.”
The BVRLA had previously argued that the original consultation underestimated the complexity of administering a mileage-based tax across large commercial fleets and warned that additional costs could undermine investment in electric vehicles.
Novuna Vehicle Solutions echoed those concerns, while acknowledging that the Government had listened to industry feedback.
Jon Lawes, Managing Director at Novuna Vehicle Solutions, said: “We welcome the Government listening to industry concerns and refining its eVED proposals to better reflect the role of fleets in the UK’s transition to electric vehicles.
“However, the reality is that this still introduces an additional cost at a time when the focus should be on making EVs more accessible and affordable. Fleets have led the way in driving EV adoption, and maintaining that momentum will be vital if the UK is to meet its net zero ambitions.
“The Government has made progress, but the timing remains a concern. If we want more businesses and motorists to choose electric, policy needs to encourage the transition, not make it more expensive.”
Peter Golding, CEO, FleetCheck, said: “We welcome the fact the government has made a series of concessions on the practicalities of eVED implementation that could potentially make life easier for fleets but it doesn’t change the core objection that the whole idea is probably just too much, too soon when it comes to electrification for both fleet and private buyers. Just at the point in time when electric cars should be starting to feel like the natural choice for buyers, this is unwelcome expense and complication.”
Other organisations also welcomed the Government’s willingness to amend the scheme while continuing to question whether now is the right time to introduce a new tax. Energy UK warned during the consultation that introducing eVED too early risks weakening one of the strongest financial incentives for switching to electric vehicles and urged ministers to ensure the policy does not undermine confidence in the EV transition.
Similarly, BEAMA, which represents the UK’s electrical infrastructure manufacturers, argued that implementation should be delayed until 2030 to avoid conflicting with the Zero Emission Vehicle (ZEV) Mandate and to prevent discouraging EV uptake during a critical stage of market growth.
The Government maintains that the revised scheme strikes a balance between creating a sustainable replacement for declining fuel duty revenues and addressing operational concerns raised by industry. It says the changes introduced following consultation will simplify compliance for fleets while ensuring the tax can be administered efficiently through the DVLA.
Nevertheless, the consultation response is unlikely to end the debate. While ministers have removed many of the operational obstacles identified by fleet operators, businesses remain concerned that introducing a new cost on electric vehicles could slow adoption just as manufacturers face increasingly demanding ZEV Mandate targets.
For much of the automotive sector, the consultation has demonstrated that Government is willing to listen and adapt policy. But the consensus across industry remains unchanged: the administration may now be more workable, yet many believe the introduction of eVED is still the wrong tax at the wrong time.
