The managing director of Ford UK has issued a stark warning to Chancellor Rachel Reeves, urging her to reject plans for new taxes on electric vehicles in the upcoming budget. Lisa Brankin stated that introducing additional levies now could severely damage consumer demand for EVs at a critical juncture.
Fragile EV Demand Under Threat
Brankin's comments come amid reports that the Treasury is considering implementing a pay-per-mile charge of 3p for electric vehicles from 2028. This new tax would sit on top of existing road taxes and is designed to help offset falling fuel duty revenue from petrol and diesel cars.
"That [policy], in the face of really fragile demand for electric vehicles, is just another brake," Brankin told the BBC. She emphasised that this is "certainly not the right time" to introduce new financial burdens on EV owners.
The Ford UK chief expressed concern about how public perception of electric vehicles has shifted, noting: "Electric vehicles in some instances have gone from being a great thing to being something that we're trying to push people into."
Government Targets at Risk
Ford, manufacturer of the UK's bestselling car, the Ford Puma, faces significant pressure alongside other carmakers to meet the government's target for 80% of new vehicle sales to be electric by 2030.
Brankin revealed that without continued government support, Ford would struggle to achieve this ambitious goal. The market has become "distorted" due to heavy discounting and lower values for second-hand electric vehicles, creating challenging conditions for manufacturers.
"When that [target] was set a number of years ago, the outlook for demand around electric vehicles was buoyant and there seemed to be momentum behind electric vehicles," she explained. "What we're seeing now is that customer demand is not in line with that ambition."
Call to Maintain Company Car Benefits
Many new electric vehicles reach UK roads through business sales, where employees benefit from lower company car tax rates compared to traditional petrol or diesel options.
Brankin specifically called on the Chancellor to retain these tax advantages for companies working to green their fleets. This support remains crucial for maintaining momentum in the transition to cleaner transport.
The Treasury responded by acknowledging the need for a fair system, stating: "Fuel duty covers petrol and diesel, but there's no equivalent for electric vehicles. We want a fairer system for all drivers whilst backing the transition to electric vehicles."
A spokesperson highlighted the government's £4 billion investment in EV support, including grants reducing upfront costs by up to £3,750 per eligible vehicle.
Regarding Ford's UK operations, Brankin confirmed that decisions about the future of their Dagenham diesel engine plant, which employs about 6,000 people, remain pending. The facility will continue building diesel engines until 2030 while the company determines its "next life."
