Fleet engagement in eVED consultation “essential”, says AFP

The Association of Fleet Professionals (AFP) has urged fleets across the UK to respond to the government’s new consultation on Electric Vehicle Excise Duty (eVED), warning that the proposed system poses significant risks for EV adoption and could create substantial administrative and operational challenges for businesses.

Paul Hollick, chair of the AFP, said members generally accepted that the Treasury needed to recover revenue lost as petrol and diesel fuel duty declines, but argued that the design and timing of the current eVED proposal were deeply concerning for the fleet sector.

“Fleets recognise the Chancellor needs to balance her books as more fleets and private motorists adopt electric vehicles,” Hollick said. “However, there are considerable problems with eVED as proposed. The timing is highly questionable. Acceptance of EVs is growing steadily but still highly uneven. Adding costs before electric cars become the norm, especially with a new form of taxation, is a very risky move.”

Hollick warned that early public sentiment toward the idea of a pence-per-mile system was negative and risked creating “a further, perhaps major, barrier” to EV uptake. The government has suggested this impact could be softened by continuing the electric car grant, but Hollick said it was unclear whether such support would materialise and would do little to support the used EV market, where fleets already face concerns over residual values.

He also criticised the structure of the proposed charging mechanism, which would see drivers estimate annual mileage, pay upfront, and later adjust payments after verification. “It’s just something of a hotch-potch,” he said. “It’s not really pay-on-use and it’s not really retrospective charging. We’re struggling to see any advantages at all.”

While some have suggested a more technologically sophisticated tracking solution, Hollick noted that such an approach would raise difficult questions around privacy, civil liberties and additional hardware or software costs for both fleets and private motorists.

Another issue highlighted by the AFP is the requirement for annual mileage verification at MOT test stations. “Cars under three years old, representing the vast majority of fleet vehicles, don’t visit MOT stations,” Hollick said. “We know there is undercapacity, so this will mean lost work time and unnecessary disruption. It certainly doesn’t fit with the consultation’s stated aim of minimising the administrative burden of eVED.”

The AFP will convene its Future Roads Committee to compile members’ feedback and submit a formal response ahead of the March 18 consultation deadline. Hollick stressed the importance of widespread industry participation. “We’re planning on making our views heard firmly as an industry body and it is essential individual fleets do the same. The more information that can be presented, the better.”

Despite the concerns, Hollick noted the government had shown a willingness to listen to the fleet sector on major policy issues. Recent examples include new measures to ease the adoption of 4.25-tonne electric vans and the Budget decision to raise the VED Expensive Car Supplement threshold to £50,000.

“A plus point is that we have more than two years before the planned introduction of the new system and it is possible, even probable, that considerable time and effort will be needed to arrive at a solution that works for fleets, private motorists and the Treasury. The current consultation may well be the first step in a lengthy process,” Hollick concluded.