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The impact of the UK budget on electric vehicles

Monday, December 22nd, 2025

Posted in Uncategorized | Posted by Dan Robins

There will be short-term savings for movers, says industry comparison specialist Compare My Move, but this is offset by long-term EV uncertainty.

The UK’s 2025 Autumn Budget has opened the door to a new form of EV taxation. Although the upcoming per-mile charge applies only to personal electric vehicles for now, it sets a clear precedent: electric transport will increasingly be taxed by distance driven, rather than through fuel duty at the pump.

At the same time, the Budget introduced measures that lower short-term costs for petrol and diesel vehicles, including a continued freeze on fuel duty and the rollout of a new fuel-price finder tool.

Dave Sayce, Managing Director and Founder of Compare My Move, comments: “Most removal companies still rely on diesel vans, so the freeze in fuel duty and the upcoming fuel-finder tool will provide some welcome stability in operating costs. In the short term, this should help keep the cost of moving home slightly lower, especially for long-distance jobs where fuel makes up a large part of the bill.

“Electric vans aren’t currently subject to the new per-mile charge, but this Budget does signal that the government is open to road-pricing in future. For companies that have invested in low-emission vans, there’s understandable concern that a similar tax could eventually apply to commercial vehicles too. For now, though, diesel removal fleets are the ones seeing the most immediate benefit.”

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