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- 5 December 2025

Demand for electric cars has slumped as Rachel Reeves prepares to hit them with a new pay-per-mile tax. The Telegraph has more.
Electric vehicle (EV) sales grew at their slowest rate in two years in November, at just 3.6%, according to figures from the Society of Motor Manufacturers and Traders (SMMT).
Mike Hawes, the Chief Executive of the SMMT, tied the slowdown to the Budget and its long build-up.
He said: “Even in a fragile market, zero-emission vehicle uptake continues to rise, which is exactly what we need. But the weakest growth for almost two years – ahead of the Government announcing a new tax on EVs – should be seen as a wake-up call that a sustained increase in demand for EVs cannot be taken for granted.
“We should be taking every opportunity to encourage drivers to make the switch, not punishing them for doing so, else the ambitions of Government and industry will be thwarted.”
The Chancellor announced a new pay-per-mile road tax for EVs in last week’s Budget. The levy will charge drivers of electric cars 3p per mile when it comes into force in April 2028 – costing them around £250 a year on average.
Read more: Electric Car Demand Sinks as UK Drivers Face Pay-Per-Mile Tax


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