As the global push for cleaner transportation accelerates, the debate over the true cost of owning an electric vehicle (EV) has reached a fever pitch in the United Kingdom. A pair of recent reports, highlighted by CNET and The Guardian, have thrown new light on the financial calculus facing British motorists—especially as the government readies a controversial mileage-based tax on EVs, set to take effect in 2028.
For years, the allure of EVs has rested on their promise of lower running costs and environmental benefits. But with new policies on the horizon and regional disparities in costs coming into focus, the question of whether going electric really saves drivers money is more complex than ever.
Let’s break down the numbers. According to a detailed analysis published on February 16, 2026 by CNET, the cost of owning an EV, a hybrid, or a gas-powered car was rigorously compared across several key categories: upfront costs, fueling, maintenance and repairs, insurance, and resale value. The verdict? Over the long haul, EVs come out ahead—though not without some caveats.
First, there’s the sticker shock. Gas-powered cars still win out when it comes to upfront costs. As automotive expert Antuan Goodwin told CNET, “The battery is going to be the biggest reason that EVs are more expensive.” Heavy-duty batteries and the high price of ongoing research and development mean that buying an EV can set you back more than a traditional car, at least initially. This is a hurdle for many would-be buyers, especially those watching their wallets.
But the tide turns when you look at fueling costs. The assessment found that the annual cost of charging an EV is about £430 (roughly $550), compared to about £1,030 (about $1,320) for fueling a petrol car. That’s a significant difference, especially as fuel prices continue to climb. Over time, these savings add up—fast.
Maintenance is another area where EVs shine. While electric vehicles may go through tires more quickly and face costly battery repairs after serious collisions, they don’t require oil changes, spark plug replacements, or exhaust system servicing. In a nutshell: fewer moving parts, fewer headaches. Hybrids, on the other hand, get the worst of both worlds, requiring both traditional and electric maintenance, which CNET described as “the worst of both worlds.”
Insurance and resale value, however, are where EVs stumble. Because electric cars are more expensive up front and their technology evolves rapidly, insurance premiums are higher and older models lose value quickly. Automotive expert Amelia Dalgaard—known to many as "Motorhead Mama"—explained, “Because EV technology improves so quickly (leading to better battery range and faster charging) that older models become undesirable more rapidly (very much like the old iPhone models).”
Crunching the numbers, CNET compared the 15-year cost of a 2026 Chevrolet Equinox EV with its gas-powered counterpart. The total? £44,500 ($57,420) for the EV versus £56,000 ($72,345) for the petrol model—a nearly £12,000 ($15,000) savings in favor of the electric. To put it simply, as Dalgaard told CNET, “In general, you’re going to be better off with an EV.”
But just as the economic case for EVs appears to be solidifying, a new challenge looms: Labour’s planned 3p-a-mile road charge for electric vehicles, due to start in 2028. According to an analysis of official data published on the same day, this mileage-based tax is expected to raise £1.1 billion annually, helping to offset the government’s declining fuel duty revenues as more drivers switch to electric.
The impact of this tax, however, is far from uniform. Rural drivers, particularly those in the south-west of England, would pay nearly four times as much as their London counterparts. Specifically, drivers in the south-west are expected to pay an average of £110.25 a year extra, compared to just £33.09 for Londoners. The East Midlands comes in at £105.09, while the north-east and north-west would see £82.20 and £83.79, respectively. Those living in smaller rural towns and villages near cities could face an even steeper bill—£156.51 a year on average. In contrast, drivers in urban areas and cities would pay about £76.02.
This regional imbalance has sparked criticism from advocates and industry leaders alike. Thom Groot, chief executive of The Electric Car Scheme, a leasing group which carried out the analysis, warned that the tax could discourage EV adoption just as the government is trying to transition ownership from “early adopters to the mass market.” He told The Guardian, “There are still a lot of people in the mass market who are very sceptical about EVs … so anything that gives people a reason not to [buy one] creates yet another boundary.”
The government, for its part, argues the policy is fair. A spokesperson told The Guardian, “Similar to fuel duty, those who drive more will pay more. Right now, electric vehicle drivers pay no fuel duty, while petrol drivers pay around £480 a year. That’s not fair. Under the new system, electric vehicles will pay half the duty of petrol cars – still the cheaper, greener choice.”
To soften the blow, the mileage-based charge was announced alongside a £1.3 billion boost to the electric car grant, which offers buyers up to £3,750 off the price of a new EV. Even so, the Office for Budget Responsibility estimates the new tax could reduce EV sales by about 440,000 over five years. Consultation on the tax is open until mid-March, giving drivers and industry groups a chance to weigh in.
Despite these looming changes, the momentum behind electric vehicles is undeniable. Electric car sales surged by nearly 25% in 2025, reaching a record 473,000—about 23.4% of the total market, according to the National Travel Survey. While this falls short of the government’s ambitious zero emission vehicle mandate target of 28%, it’s a clear sign that EVs are moving into the mainstream.
Fuel duty, meanwhile, continues to decline. The government expects to raise £24 billion this financial year, down from £27.5 billion in 2019-20—a trend that underscores why new tax mechanisms are being considered.
So, are EVs still the best bet for British drivers? The answer, it seems, depends on where you live, how much you drive, and how quickly technology continues to evolve. For now, the numbers suggest that, even with new taxes on the horizon, the long-term savings and environmental benefits of EVs remain compelling. But for rural drivers—those who rack up the miles and have fewer charging options—the road ahead may be a little bumpier.
As the UK government balances its green ambitions with fiscal realities, one thing is clear: the switch to electric cars is reshaping not just the future of driving, but the very economics of getting from A to B.