(qlmbusinessnews.com . Thu 20th Nov, 2025) London, UK —
Potential Pay-Per-Mile EV Tax Raises Concerns Among UK Car Buyers, Says Ford's Lisa Brankin
Potential Electric Vehicle Taxes May Dissuade Buyers, Ford UK Chief Cautions
In a recent development that could impact electric vehicle (EV) sales, the Managing Director of Ford in the UK, Lisa Brankin, has raised concerns that proposed taxes on EVs could deter consumers from purchasing them. This warning comes amidst signs that enthusiasm for electric cars is waning.
Reports have surfaced suggesting that the Chancellor, Rachel Reeves, might be considering the introduction of new taxes on electric vehicles in the forthcoming Budget. These measures could potentially include a pay-per-mile charge set to commence in 2028.
Speaking on the implications of such policies, Brankin expressed her apprehensions in the Reporters's Big Boss Interview podcast, highlighting that the timing couldn't be less opportune. She emphasized that with electric vehicle demand already fragile, the introduction of new taxes would further impede momentum.
Brankin also pointed out that the administrative burden of tracking mileage could discourage prospective buyers from transitioning to electric vehicles. This comes at a time when the automotive industry is under significant pressure to align with the UK government's net-zero objectives, which mandate that 80% of new car sales should be EVs by 2030 to avoid fines.
To support this transition, the government has reintroduced a grant of up to £3,750 to incentivize electric vehicle purchases. However, Brankin stressed that achieving the 80% sales target for EVs is unfeasible without such governmental initiatives.
Ironically, Ford, which boasts the most popular vehicle in the UK, the Ford Puma, and the top-selling commercial vehicle, the Transit, ceased manufacturing vehicles in the UK in 2013. The company employs about 6,000 individuals across the nation, predominantly in engine and transmission manufacturing plants.
Data from the Society of Motor Manufacturers and Traders (SMMT) indicates that fully electric vehicles accounted for approximately 22.4% of all new car sales up to the end of October 2025, up from 18.1% the previous year. Despite a record surge in EV sales in September 2025, Brankin lamented a “distorted” market, evidenced by widespread discounting and lower resale values in the second-hand market.
Brankin also underscored the importance of retaining tax benefits for businesses that opt for greener vehicle fleets, highlighting the broader implications for Ford’s nearly 1,800 employees at the Dagenham diesel engine plant. While Ford is exploring future prospects for the Dagenham site, no definitive plans have been announced.
As discussions around potential EV taxes unfold, the auto industry and potential buyers alike are keenly awaiting decisions that could significantly shape the UK's vehicular landscape and its path to a greener future.
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