Richard Sallnow, transport expert at PA Consulting, argues that as the UK moves towards per-mile charging for electric vehicles, clear ownership and governance of the scheme will be crucial to protect EV uptake, maintain public trust, and ensure road pricing supports – rather than undermines – the country’s decarbonisation ambitions.
With the government’s recent decision to introduce a per-mile charge on electric vehicles (EVs), the question of who should own, and direct, the national road pricing scheme has become paramount. The ownership and governance of the scheme will be critical – not only for day-to-day operations but for ensuring policy choices support the UK’s wider ambitions, such as meeting net zero targets and avoiding any negative effect on EV adoption.
A scheme of this nature demands a breadth of capabilities across policy direction, revenue management, operational delivery, and customer interface. Several government bodies already possess relevant capabilities: DVLA collects vehicle excise duty and manages registration databases; DVSA maintains annual vehicle inspection records; meanwhile the private sector is well-equipped to deliver a more digital ‘opt-in’ solution (likely to be considered).
For setting the overall direction and principles, however, including safeguarding the pace of EV adoption, the scheme’s accountable body will need a strong policy mandate, cross-department coordination, and oversight. HM Treasury and HMRC could be considered for financial efficiency and tax management, but will they give consideration to the pace of EV transition? By contrast, Department for Transport (DfT), has responsibility for national transport policy and sets the strategic framework for road usage. DfT may therefore be best placed to safeguard alignment with EV uptake goals and the wider decarbonisation objectives, perhaps under the remit of the Office for Zero Emission Vehicles (OZEV).
It’s going to be vital that the department or body driving the scheme balances fiscal discipline with wider objectives. The per-mile charge must not act as a disincentive for people to switch to EVs, which is a risk if charges are set too high or implemented insensitively. As the policy already suggests, the 3 pence per mile charge for EVs (and 1.5 pence for plug-in hybrids) is already considerate of this balance – tax on EVs remains lower than equivalent fuel duty. However, the question is how this balance will be maintained in future years as policymakers will have a temptation to increase the per-mile fee whilst protecting the momentum of the green transition.
Developing and managing the collection and enforcement systems will likely fall to government agencies with the best operational capability. DVLA already handles mass vehicle data and taxation, while DVSA’s annual data from MOT odometer readings could underpin mileage-based billing. A close operational partnership between these agencies will maximise efficiency. For example, DVLA and DVSA expanding its existing service functionality should be reasonably simple, whilst the scheme could draw on existing private sector capabilities to deliver a digital solution that enables greater customer convenience.
At each stage, the lead body must ensure clarity in communications and public engagement, explaining not only how the scheme works but why it exists – all while maintaining public trust and compliance and supporting the UK’s climate targets. Linking the revenues explicitly to road infrastructure, decarbonisation projects, or improved public transport could further help public acceptance.
As progress starts on transforming towards a per-mile payment for EVs, the entity that owns and directs the scheme must bring balance to maintaining funds to support ongoing roads maintenance with policies that accelerate, rather than inhibit, EV adoption. With strong leadership from the DfT, supported by DVLA, DVSA, and commercial partners, the scheme can be designed to close the funding gap while keeping the UK on track for transport decarbonisation.
Image courtesy of PA Consulting.
