Thu, Nov 6, 2025 Rachel Reeves has been told to axe her controversial 3p pay-per-mile car tax scheme, with industry experts unified in their disappointment at the scheme. Experts from leading motoring bodies such as AutoTrader and the AA have called on Reeves to reconsider the charge over fears the move could backfire on the electric car market.

A major election pledge by Britain's Labour government looked set to be breached after Chancellor Rachel Reeves strongly hinted that tax rises were on the way.

Car owners could soon find themselves paying a new “pay-per-mile” tax under plans reportedly being considered by Chancellor Rachel Reeves. The proposal, expected to be unveiled in the November 26 Budget, would see drivers charged around 3p for every mile they drive, a move critics have dubbed a “poll tax on wheels”.

Rachel Reeves has confirmed she will raise income tax in her November 26 Budget. The Chancellor told the Budget watchdog, the Office for Budget Responsibility (OBR), that higher personal taxation is one of the “major measures” in next month’s statement, The Times reports.

Chancellor Rachel Reeves may announce a new tax scheme for people who drive electric vehicles (EVs) at the Budget, sources who know about the matter said. The BBC revealed that talks about the chances of having a new levy on EVs are strong within the government, as part of their plans to generate more taxes.

Rachel Reeves is eyeing a raid on funding for heat pumps and home insulation to help cut £170 off energy bills.

The Bank of England has warned that fears over Rachel Reeves’s looming tax raid will weigh on growth well into 2026.

The moment Rachel Reeves walked into No 11, the UK economy stopped growing. In the final six months of Rishi Sunak 's doomed Tory government, GDP grew by a healthy 1.2%. Under six months of Reeves, it grew 0.0%.