Lease Electric, a Gloucestershire-based electric vehicle (EV) leasing company, has met with Sir Geoffrey Clifton-Brown MP, Member of Parliament for The North Cotswolds and Chair of the Public Accounts Committee, to raise concerns about the Government’s recently announced proposal to introduce a 3 pence per mile tax for electric vehicles from April 2028, known as eVED.
Lease Electric recognises the Government’s need to develop a sustainable long-term replacement for Fuel Duty, which currently generates approximately £24 billion in annual revenue. However, the company believes the proposed per-mile tax, as currently outlined, risks being administratively complex, costly to implement, and potentially unfair to drivers, particularly during a critical period of EV adoption.
“It was a real pleasure to meet Richard Markey and his team, who have formed their own company providing leasing arrangements for electric cars to a number of Gloucestershire’s leading businesses. The company is constantly expanding, and it was great to spend time with them, given their expertise in the electric vehicle market.” Said Sir Geoffrey Clifton-Brown MP “Richard gave an informative presentation covering a number of subjects on promoting electric cars, and we discussed several different ways in which the sector could be further expanded.”
Insight from BVRLA
Colleagues from the British Vehicle Rental and Leasing Association (BVRLA) were also present at the meeting, providing insight into their research into eVED-style systems. The BVRLA highlighted findings from a recent visit to Iceland, where a pence-per-mile model has reportedly had adverse effects on EV uptake and is widely viewed as an administrative complexity. While the BVRLA’s position remains that eVED should not be introduced in any form, Lease Electric recognises that Government must replace lost revenue over time and is committed to working constructively with policymakers to develop a fair and workable solution.
A Practical Alternative Using Existing Systems
During the meeting, Lease Electric presented an alternative approach designed to support revenue generation while avoiding unnecessary administrative burden and reducing the risk of loopholes or misuse.
Rather than introducing a new per-mile charging scheme, Lease Electric proposes a model that would utilise the existing Vehicle Excise Duty (VED) framework, supported by data already published by vehicle manufacturers, enabling the Government to raise revenues more efficiently without increasing administrative costs for taxpayers.
Lease Electric noted that many of the concerns surrounding the proposed per-mile tax have already been raised across the industry, including by organisations such as the Society of Motor Manufacturers and Traders (SMMT).
Using Miles/kWh as a Fairer Measure of Efficiency
The proposal is based on a widely recognised and understood EV efficiency metric: Miles per kilowatt hour (Miles/kWh). This measurement is already familiar to EV drivers and is commonly used across the UK to compare vehicle efficiency, similar to how Miles Per Gallon (MPG) has traditionally been used for petrol and diesel vehicles.
Lease Electric believes that incorporating efficiency-based measures through the existing VED system could provide a more pragmatic and equitable route to taxation, while supporting the Government’s broader aims of decarbonisation and cleaner transport.
Open Letter Issued Following Meeting
Following the meeting with Sir Geoffrey Clifton-Brown MP, Lease Electric has now written an open letter setting out its concerns and formally proposing the alternative model. Sir Geoffrey indicated his support for putting the proposal forward to colleagues and to the Chancellor for consideration.
The open letter can be read here: Lease Electric’s Open Letter to Gloucestershire MPs
ENDS
Media Contact:
Lease Electric
enquiries@lease-electric.com | 01452 229591
Website: lease-electric.coM
