Electric car drivers to pay road tax from April 2025

Electric cars will no longer be exempt from vehicle excise duty from April 2025, the chancellor has said.

Announcing the change as part of his Autumn Statement, Jeremy Hunt said the move was designed to make the motoring tax system "fairer".

The RAC motoring group said it was "probably fair" the government asks electric car owners to contribute to the upkeep of roads.

It added it does not expect the change to dampen demand for electric cars.

Mr Hunt said: "Because the OBR (Office for Budget Responsibility) forecasts half of all new vehicles will be electric by 2025, to make our motoring tax system fairer I've decided that from then, electric vehicles will no longer be exempt from vehicle excise duty."

The vehicle excise duty is a tax levied on vehicles on UK roads. At present, electric cars are exempt.