Ford’s UK managing director has called on Chancellor Rachel Reeves to avoid imposing new taxes on electric vehicles in next week’s Budget. Lisa Brankin warned that additional levies would damage already weak demand for zero-emission cars.
The Treasury is reportedly considering a 3p-per-mile charge on EVs from 2028 to replace lost fuel duty revenue.
Brankin told the BBC it’s “certainly not the right time” to add extra costs for EV drivers. She said the policy would create “just another brake” on electric vehicle adoption.
“That policy, in the face of really fragile demand for electric vehicles, is just another brake. Electric vehicles in some instances have gone from being a great thing to being something that we’re trying to push people into.”
Her comments come as automakers struggle to meet the government’s target – 80% of new car sales must be electric by 2030. Ford’s Puma ranks as the UK’s bestselling car.
Government Support Remains Critical
The government brought back an electric car grant worth up to £3,750 in July after industry pressure. Manufacturers argued the 2030 targets weren’t realistic without more incentives.
EV sales have hit record levels since the grant returned. But Brankin said the recovery stays fragile and depends heavily on government backing.
She described the EV market as “distorted” by heavy discounting and dropping used car values. This makes it harder for manufacturers to hit required sales numbers.
“When that target was set a number of years ago, the outlook for demand around electric vehicles was buoyant. What we’re seeing now is that customer demand is not in line with that ambition.”
Consumer resistance is growing stronger, according to Brankin.
“It’s really easy to sell people things they want. It’s hard to sell people things they don’t want.”
Many EVs sell to businesses for company fleets because of lower tax rates. Brankin urged the Chancellor to protect these benefits and support companies “greening” their vehicle fleets.
Ford’s UK Operations
Ford employs around 6,000 people across the UK, including at its diesel engine facility in Dagenham. The plant will keep producing diesel engines until 2030.
Brankin said no decisions have been made about Dagenham’s long-term future. “We’re working really hard on what the next life of Dagenham looks like,” she explained.
A Treasury spokesperson acknowledged the need for a “fairer system for all drivers” as fuel duty revenues decline. The government is backing the EV transition through £4 billion of investment, including purchase grants and charging infrastructure.
Ministers will consider additional support to make electric vehicles “more convenient and more affordable,” according to the spokesperson.
