[REVISION HISTORY]

UK and New Zealand electric vehicle policy shifts

Updated 4 times since CLSTR started tracking revisions of this situation.

What changed

2026-08-16 09:18 UTC → 2026-08-17 11:28 UTC · added ~~removed~~

Governments in the United Kingdom and New Zealand are implementing new fiscal and infrastructure policies to manage the transition toward electric vehicles (EVs). The United Kingdom is introducing the Electric Vehicle Excise Duty (eVED) to compensate for lost fuel tax revenue. Scheduled to take effect on April 1, 2028, this mileage-based tax will be applied in addition to the existing annual Vehicle Excise Duty (VED). Under the structure, 100% electric and hydrogen vehicles will be charged approximately 3 pence per mile, while plug-in hybrids will face a rate 50% lower at 1.5 pence per mile. The Office for Budget Responsibility estimates the measure will generate £1.1 billion in its first year, potentially rising to £1.865 billion by 2030. The government intends to use these revenues to fund road infrastructure. Simultaneously, the UK government is evaluating its Zero Emission Vehicle (ZEV) mandate. While the official target aims for 80% of new car sales to be zero-emission by 2030, the industry is pressing for flexibility regarding mandatory sales quotas as market trends show a gap between political goals and registration rates. Despite this, battery electric vehicle registrations grew by 49% year-on-year in July 2026. To support the broader automotive sector, the UK is investing nearly £130 million through the DRIVE35 programme to advance zero-emission technologies. In New Zealand, the government is moving toward a road-user charge system for all light vehicles to replace traditional petrol taxes, which may result in higher costs for hybrid vehicle owners. To support the transition, the government has launched a second round of zero-interest loans to expand national EV charging infrastructure, aiming to establish 10,000 public charge points by 2030.

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