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BVRLA Chief Executive Toby Poston comments: Constructive and candid discussions show that government recognises the role of our sector in delivering decarbonisation
The consultation on the proposed eVED regime will close in just a couple of weeks. The window in which to share concerns is closing.
That is why it was encouraging to have a constructive and candid discussion with Exchequer Secretary Daniel Tomlinson last week. Also present were senior officials from DVLA, DfT, HM Treasury, DVSA and the Cabinet Office, to discuss the future of electric vehicle taxation.
Let me restate our position clearly: this is the wrong tax at the wrong time.
The vehicle rental and leasing sector is the engine room of the UK’s EV transition. Our members currently operate over 750,000 electric vehicles. Together with their customers, they have absorbed huge upfront costs, built consumer confidence and supported the Government’s decarbonisation ambitions since day one. To introduce new motoring taxes now risks destabilising that progress.
But we are also realists.
As fuel duty revenues decline, the Treasury must look elsewhere. The key question is not whether change is coming, but how it can be designed and implemented. It is prudent to understand that this is the reality, and essential that the government makes the right decisions from an informed position.
If new charging mechanisms are introduced, they must minimise unnecessary and unfair costs. They must be convenient, proportionate, and crucially, scalable.
The fleet and mobility services sector operates at the very heart of the UK vehicle parc. It manages millions of vehicles, operates complex funding models and carries huge financial risk. Any poorly designed system will not simply be an administrative headache, it will have direct implications for affordability, leasing rates, rental prices and ultimately the pace of the EV transition itself.
The breadth of departments represented in our recent meeting, and engaging with us more widely, shows that they recognise the role our sector is playing. It also emphasises the scale of this transition and the range of government stakeholders that need to be involved in its development and delivery.
Achieving alignment across those departments and industry stakeholders beyond is absolutely essential.
Our members are already facing rampant EV depreciation that is eroding balance sheets and undermining business confidence. At the same time, crippling uncertainty around motor finance regulation and redress continues to cast a long shadow over investment decisions. Layering additional cost and complexity onto this environment without careful thought is entirely counterproductive.
What we need instead is policy coherence.
For the Government to achieve its targets, fleets must continue as a key channel for EV adoption. To do that, the tax and regulatory framework must be designed to support – rather than penalise – that role. Any future road pricing regime should be built with fleet operations in mind from day one. That means simple collection mechanisms, interoperability across jurisdictions, clear data governance rules and a structure that avoids double charging or unintended consequences.
We are under no illusions about the fiscal pressures facing Government. Nor are we arguing that EV drivers should never contribute to the upkeep of the road network. Timing, design and transition matter enormously.
Get this wrong and we risk stalling the very market that has delivered the bulk of EV growth to date. Get it right and we can create a sustainable, future-proof system that supports decarbonisation, provides revenue stability and maintains affordability for businesses and consumers alike.
Our message remains consistent: eVED as proposed is the wrong tax at wrong time.
Let’s instead work together to ensure road pricing reform is done in a way that recognises the central role of fleets, protects momentum in the EV transition and delivers a system that is fair, practical and fit for purpose.
