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The UK Government has confirmed a major shift in electric vehicle (EV) taxation, announcing that a mileage-based charge will begin in April 2028. Under the new system, EV drivers will pay 3p per mile, while plug-in hybrid owners will be charged 1.5p per mile.  

The Office for Budget Responsibility (OBR) said the levy equates to roughly half the fuel duty rate currently paid by petrol car drivers. 

The mileage-based fee will be collected alongside existing Vehicle Excise Duty (VED) payments, ensuring EVs contribute more directly to road taxation.  

To ease the transition, the government will raise the threshold for the expensive car supplement (ECS) on battery electric cars from £40,000 to £50,000 starting in April 2026. The ECS, an additional VED charge spread across five years, currently adds £2,370 for vehicles purchased in 2025–2026. 

Officials estimate that increasing the ECS threshold will reduce tax revenues by £0.5bn in 2030–2031, reflecting the government’s balancing act between revenue and incentives. 

A parliamentary inquiry has been launched into illegal vehicle number plates following growing concern from police, industry experts and MPs about their impact on enforcement and road safety. The All-Party Parliamentary Group for Transport Safety (APPGTS) will examine how misuse contributes to fraud and wider vehicle-related crime. 

The move follows campaigning by West Bromwich Labour MP Sarah Coombes, supported by Labour MP Paul Waugh, who described the current market as a “Wild West” and called for tighter rules. Police and researchers have highlighted coatings and modifications that block cameras from reading plates. 

Operation Phantom, a West Midlands pilot, found more than 4,000 “ghost plates” in Birmingham within two weeks. West Midlands PCC Simon Foster warned offenders use them to “evade detection, enforcement and accountability.” The inquiry will review the UK’s registration plate system and assess potential shortcomings, with specialists warning of vulnerabilities to criminal exploitation. 

Jaguar Land Rover (JLR) has resumed normal operations at its UK facilities following a cyberattack that forced a shutdown in September. Parent company Tata Motors oversaw a phased restart last month as systems were restored. 

The UK Government stepped in with a guarantee to enable up to £1.5bn in commercial bank loans, announced by Business Secretary Peter Kyle, to help stabilise JLR’s supply chain. 

In response, JLR restarted wholesale systems to boost cash flow, reopened its Global Parts Logistics Centre to maintain customer service, and introduced a supplier financing scheme offering upfront payments during the restart phase. 

Despite the disruption, JLR used the downtime to accelerate its electrification programme, including underbody build validation and advanced driver-assistance system (ADAS) testing at its Solihull site. 

Transport for London (TfL) has confirmed that electric vehicles will no longer be fully exempt from the Congestion Charge from 2 January 2026. A new tiered discount system will apply, directly affecting fleet costs and finance models. 

Electric cars registered with Auto Pay will receive a 25% discount, paying £13.50 daily, while electric vans, HGVs and quadricycles will benefit from a 50% discount at £9. The standard charge for other vehicles will rise to £18. Vehicles not registered with Auto Pay will pay the full rate. 

The current 100% Cleaner Vehicle Discount ends on 25 December 2025. TfL said the changes are necessary to ensure the charge continues to manage traffic and congestion. From March 2030, the discount for electric cars will drop further to 12.5%, while vans and HGVs retain 25%. 

Fleet operators and finance providers are expected to reassess costs, routing and lease models in response. 

Six major truck manufacturers – Scania, MAN, Volvo Trucks, Daimler, IVECO and Ford – have urged European Commissioners to amend the EU’s truck CO₂ Regulation, according to a letter seen by Transport & Environment (T&E). 

The companies want the ability to generate emissions credits, effectively altering how reduction targets are calculated. T&E analysis suggests the change could cut zeroemission truck sales in 2030 by around 27%. 

T&E warned the proposal would undermine Europe’s decarbonisation plans, with freight director Stef Cornelis describing it as a “major rollback” despite being presented as a minor adjustment. He added that shifting targets could create investment uncertainty for firms building charging networks and grid capacity. 

T&E modelling indicates manufacturers could bank credits in 2026–2028 and use them to ease compliance in 2030–2032, delaying the transition to zeroemission fleets.