FleetEV CEO urges Chancellor to reconsider pay-per-mile tax

Following the 2025 Budget, leading entrepreneur Jarrad Morris, founder and CEO of FleetEV, said:

“With the Chancellor’s confirmation that a 3 pence-per-mile charge for electric vehicles, alongside a 1.5 pence-per-mile charge for plug-in hybrids, will be introduced from April 2028, and that both rates will rise annually in line with inflation, FleetEV calls on the Government to reconsider, or at least significantly amend, the policy in its current form. 

“While we welcome the commitment to fund a £200 million expansion of the UK’s charging network, this must not come at the expense of undermining the economics of electrification at a crucial moment for fleets.

“UK fleets, many of which only recently began electrifying, urgently need long-term certainty. Imposing a pay-per-mile levy at this critical stage risks destabilising business cases built around the incentives and fiscal environment originally promised.

“For organisations, especially public bodies and essential services already under financial strain, the additional mileage cost could derail plans to move to zero-emission transport.

“Early adopters of EVs made their decisions in good faith based on Government-backed support for decarbonisation. It would be deeply unfair to penalise them now for acting early in the transition.

“If the Government proceeds, any mileage-based levy should only apply to new EV registrations from 2028. That approach would protect those who invested early in the transition, whilst giving fleets, businesses and public sector operators the time and predictability they require to plan future purchases and operations sensibly.

“Above all, the UK’s ambition to lead globally in green mobility depends on stable, consistent policy. Sudden shifts that undermine EV economics risk reversing hard-won progress, discouraging fleet electrification, eroding investor confidence, and slowing the shift away from higher-emission vehicles at exactly the moment net-zero commitments demand acceleration.

“FleetEV remains committed to supporting organisations to electrify their fleets efficiently, but we urge the Government to ensure that the policy framework does not punish those who led the charge.”

FleetEV focuses on making the switch to EVs practical and efficient through comprehensive leasing, salary sacrifice, and fleet solutions tailored to diverse client needs across public and private sectors.