The UK's journey towards sustainable transport faces a potential bump in the road, as new research from Venson reveals a significant shift in public sentiment: a striking 69% of motorists now believe it's "fair" for electric vehicles (EVs) to pay Vehicle Excise Duty (VED). This marks a dramatic increase from just 18% in 2022, signaling a growing acceptance of EV taxation – but at what cost to the acceleration of the EV transition?
While the EV Cafe understands the need to address the impending shortfall in fuel duty revenue as the UK rapidly electrifies its fleet, we view this growing public appetite for immediate EV taxation with a degree of concern. The shift comes as EVs registered from April 2025 are already losing their long-standing VED exemption, with a £10 first-year rate and then the standard £195 rate applying from the second year. Even more impactful, the 'expensive car supplement' of £425 a year now applies to EVs over £40,000, bringing the total annual VED for many popular models to a substantial £620.
The survey highlights that almost a third of respondents go further, advocating for the standard £195 VED rate from day one of EV ownership. This level of support for immediate and significant taxation raises questions about the UK's commitment to incentivising the crucial switch to electric.
For years, the initial tax exemptions and lower running costs have been key drivers for EV adoption, particularly for fleets which have been at the forefront of the transition. As Simon Staton of Venson Automotive Solutions points out, while public opinion might see this as "fair," it presents a tangible "additional £620pa tax bill on many fleet EVs." This could force businesses to "reassess their fleet strategies," potentially slowing the very momentum we need to achieve our sustainability goals.
The EV Cafe maintains that a smooth and accelerated transition to electric vehicles is paramount for the UK's environmental future. While a long-term, equitable road pricing scheme that reflects actual road usage and environmental impact is a sensible consideration, front-loading significant taxes onto nascent EV adoption risks stifling progress. It's vital that the government strikes a delicate balance – addressing revenue shortfalls without inadvertently creating barriers that deter individuals and businesses from making the sustainable choice. If we truly want to maintain the upward trajectory of EV sales and achieve our net-zero ambitions, protecting the early adopters and those driving the transition, especially fleets, is non-negotiable.