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Written question asked by Joe Robertson (Conservative) on Wednesday, 17 June 2026, in the House of Commons. It was due for an answer on Monday, 22 June 2026 (named day). It was answered by Dan Tomlinson (Labour) on Monday, 22 June 2026 on behalf of the Treasury.

Electric Vehicles: Tolls

Question

To ask the Chancellor of the Exchequer, pursuant to the Answer of 4 June 2026 to Question 4266, whether she has determined the proportion of eVED revenue from the first three years that will be allocated to (a) consumer electric vehicle incentives and (b) support for the automotive manufacturing industry; and what the expected monetary value of each allocation is.

Answer

The Government announced at Budget 2025 that electric Vehicle Excise Duty will be introduced from April 2028 to ensure all motorists continue to make a fair contribution to road usage, as fuel duty receipts decline during the transition to electric vehicles (EVs).

At the same time, the government remains firmly committed to supporting the transition to EVs and UK automotive manufacturers, and so announced additional support alongside eVED. This includes £1.3 billion of additional funding for the Electric Car Grant (ECG), £200 million for chargepoint rollout, increasing the Expensive Car Supplement (ECS) threshold to £50,000 for EVs at a cost of £1.2 billion over the forecast period, extending the 100% first year allowances for zero emission cars and chargepoint infrastructure by a further year at a cost of £190 million over the forecast period, and delaying the proposed changes to benefit-in-kind ownership rules for Employee Car Ownership Schemes at a cost of £745 million over the forecast period. This support is being introduced before the tax takes effect to support continued momentum in EV take-up.

To support the UK automotive manufacturing sector, the government also extended funding for the Drive35 programme, allocating a further £1.5 billion to 2035 and taking total funding to £4 billion over the next 10 years. This will support the development of UK capability in next generation, zero emission technology, ensuring the UK remains globally competitive.

The revenue generated from eVED will also support investment in maintaining and improving the condition of roads across the country, benefitting all motorists. By 2029-30, the government will also commit over £2 billion annually for local authorities to repair, renew, and fix potholes on their roads – doubling funding since coming into office.

Secondary information

Type
Written question
Reference
10903
Session
2026-27
Related items
Electric Vehicles: Tolls
Thursday, 4 June 2026
Written questions
House of Commons
Subjects
Finance Incentives Electric vehicles Manufacturing industries Tolls
Contains statistics
Yes
Link
View this Written question on www.parliament.uk