Ford UK boss warns Reeves against new EV taxes as Budget looms

The head of Ford UK has urged Chancellor Rachel Reeves not to introduce new taxes on electric vehicles in next week’s Budget, warning that any additional levies risk undermining already fragile demand for zero-emission cars.

Lisa Brankin, managing director of Ford UK, said it was “certainly not the right time” to impose extra costs on electric vehicle drivers, amid reports that the Treasury is considering a 3p-per-mile charge on EVs from 2028 as part of plans to replace lost fuel duty revenue.

Speaking to the BBC, Brankin said: “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 intervention comes as carmakers face mounting pressure to meet the government’s requirement for 80% of new car sales to be electric by 2030. Ford, whose Puma is the bestselling car in the UK, is among the manufacturers lobbying for continued support to stimulate demand.

The government revived an electric car grant worth up to £3,750 in July after sustained pressure from the industry, which argued that targets were becoming unrealistic without further incentives. While electric car sales have since reached new highs, Brankin warned the rebound remains precarious and heavily reliant on government backing.

She said the EV market had been “distorted” by aggressive discounting and falling second-hand values, making it harder for carmakers to keep up with mandated sales thresholds. “When that target was set a number of years ago, the outlook for demand around electric vehicles was buoyant,” she said. “What we’re seeing now is that customer demand is not in line with that ambition.”

Brankin added that persuading consumers to switch was proving increasingly difficult. “It’s really easy to sell people things they want. It’s hard to sell people things they don’t want.”

A significant proportion of EVs are bought by businesses for employees because of lower company car tax rates. Brankin urged the Chancellor to protect this benefit, saying companies should be supported in “greening” their fleets.

Ford employs around 6,000 people in the UK, including at its diesel engine plant in Dagenham. Brankin said no decisions had been made about the long-term future of the site, which will continue producing diesel engines until 2030. “We’re working really hard on what the next life of Dagenham looks like,” she said.

A Treasury spokesperson said the government recognised the need for a “fairer system for all drivers” as traditional fuel duties decline. The spokesperson said ministers were backing the transition to EVs through £4 billion of investment, including grants to reduce upfront costs, and would consider additional support to make electric vehicles “more convenient and more affordable”.