The government’s decision to introduce specific eVED arrangements for fleets is a welcome acknowledgement that a system designed around individual motorists would not work for businesses operating vehicles at scale.

Allowing fleets to provide central mileage estimates, make aggregate payments and settle liabilities before defleeting should reduce some of the administrative burden.

The proposed API and web interface are also sensible, provided they are thoroughly tested and supported by clear guidance ahead of April 2028.

These changes, however, address the mechanics of the tax rather than its wider impact. At 3p per mile, a fully electric car covering 20,000 miles a year would attract an annual charge of £600, which fleets will need to build into whole-life cost calculations.

The cost will also be felt by employees who have moved from privately owned cars into electric vehicles through salary sacrifice schemes, including many public-sector workers. While we recognise the principle that those who drive more should contribute more, the timing risks causing some employees considering salary sacrifice to delay making the switch.

This could create a pause in EV uptake at a time manufacturers face increasingly demanding ZEV mandate targets. Drivers and fleets must also understand that the 3p rate will not remain fixed, with increases in line with CPI planned from 2029-30.

The government must now work closely with the fleet industry to ensure eVED does not create unnecessary friction or weaken the business case for electrification.