UK at risk of ‘two-tier’ car tax system with thousands of drivers paying more to use roads

Labour could create a “two-tier” system with , according to experts. 

owners face massive discrepancies, with drivers forced to 

Motorists topping up their vehicle on their driveway used at the plug

Road users without access to a private driveway, such as in major cities, are pushed into paying more through no fault of their own.

Leading motoring campaign group has now called out the Government over the rule and demanded immediate changes. 

Motoring experts have backed the move, with many expressing their own concerns about how the fee could impact road users.  

Eurig Druce, Group Managing Director at , stressed a “two-tier” system was a real possibility. 

Eurig said: “The path to electric has been set. But there is a real risk of creating a two-tier motoring system where those with a driveway pay less to get around than those without. 

“That can’t be right and that’s why we support the FairCharge campaign.”

Previous data shows the average cost for charging at home is 32p per kWh of electricity. 

Meanwhile, those plugging in at public charging stations are likely to pay as much as 48p per kWh to top-up.

FairCharge estimates show that a reduction in VAT on public charging from 20% to 5 would save EV drivers around £85million in 2025. 

Total savings could increase to as much as £315m by the end of the decade as more switch to zero-emission models. 

has previously claimed the rule “tax discriminates against drivers without driveways or garages”.

They also admitted the policy would ultimately “discourage EV sales” and risked “undermining the UK’s net zero goal”.

There has been a big push to change the rule in recent years but the Government has yet to take action. 

Back in 2022, a petition was signed by 23 Chargepoint operators demanding the Government to reduce the VAT rate on street plugs.

FairCharge previously demanded action back in March 2023 with 44 MPs backing the letter.