Rachel Reeves' new car tax plans could see drivers ditch their electric cars to return to petrol and diesel models, according to shock new analysis. Drivers may be prepared to ditch EVs and go back to combustion models over fears around new pay-per-mile tax fees set to be introduced by the Chancellor.

A new 3p per mile road pricing charge will hit electric vehicles from April 2028, with hybrid models set to pay 1.5p per mile to use the roads. Petrol and diesel owners will not be affected by the charge as they already pay Vehicle Excise Duty (VED) to get behind the wheel.

Car tax exemptions were seen as a major benefit to transition to electric models but incentives are reducing as more motorists make the jump to electric. According to a new study by Zenith, 74% of 3,000 road users polled are concerned about the potential cost of a pay-per-mile road tax.

Meanwhile, a staggering 40% suggested they would consider switching back to an internal combustion engine car if running an EV became more expensive.

Andy Wolff, managing director of Zenith's corporate division, stressed there was a "clear disconnect" emerging between officials in the Government and ordinary motorists. Zenith's study found that 88% of road users believe the Government is not doing enough to support the UK's EV transition. Andy explained that "inconsistent" policies were undermining trust in the transition to electric vehicles, leaving motorists uncertain.

Andy said: "Drivers are being offered tax incentives and grants to encourage EV adoption while simultaneously facing uncertainty around future taxation, including proposals such as pay-per-mile charges. These conflicting messages mean only 15% of EV drivers feel optimistic and confident about the transition to electric vehicles."

The Treasury has previously explained that motoring taxation was "overdue reform" with new fees necessary. The Treasury explained that by doing nothing, around one in five car drivers will pay no fuel duty at all by 2030, while other motorists will continue to contribute an average of £480 a year.

They stressed this was not a fair outcome given that all cars cause congestion and wear and tear on the roads.

The Treasury added: "That's why the government will introduce electric Vehicle Excise Duty (eVED) from April 2028. It will be set at half of the equivalent rate of fuel duty for electric cars, and half again for plug-in hybrid cars.

"eVED will ensure all car drivers contribute, but will still maintain important incentives to switch to an electric vehicle."