EV drivers would face 3p-a-mile charge on top of other road taxes to offset falling revenue from petrol and diesel cars

Rachel Reeves is drawing up plans for a new pay-per-mile tax for electric vehicles to announce in this month’s budget worth an extra £250 a year on average, according to reports.

Under the plans expected to be announced on 26 November, EV drivers would face a new charge of 3p a mile on top of other road taxes to offset falling revenue from petrol and diesel cars as drivers switch to greener options.