Rachel Reeves has been told to introduce one simple rule change to dramatically boost electric car demand in the UK after her new pay-per-mile system was confirmed. At the Budget, Chancellor Rachel Reeves announced a new 3p pay-per-mile charge for electric cars, which will come into effect in 2028.

The new change has sparked concern that demand for electric models could take a hit, with estimates from the Office for Budget Responsibility (OBR) estimating it could lead to 440,000 fewer EVs on the road. Matt Galvin, Managing Director of Polestar UK, has instead called on the Chancellor to lower fees for secondhand EVs in order to spark a surge of interest.

Speaking exclusively to Express.co.uk, Matt said: There's one big one actually, and it's a big missed opportunity, a subsidy for pre-owned or used electric cars.

"If we are talking about price being a barrier to EV adoption, then there's no better way right now to get into a three-year-old electric car. They are at a price parity in most places now with their petrol or diesel counterparts, and that gives people the ideal opportunity to try an electric car and realise it can work without the hefty price tag of a new car.

"This happened in the Netherlands about a year or two ago, the Dutch Government put subsidies on used EVs and it worked really, really well."

Under the Dutch national subsidy scheme (SEPP), new EVs received a subsidy of €2,950 (£2,585), while buyers of second-hand electric models received €2,000 (£1,753). However, the Dutch SEPP scheme came to an end in 2025 with no incentives now in place for EV owners.

Second-hand EV demand is already on the up, with data from the Society of Motor Manufacturers and Traders (SMMT) showing used battery electric model sales were had increased 44.4% to 80,614 units. Analysis shows that one in 25 buyers made the switch to electric models, with EVs now enjoying a record market share of 4%.

As well as helping to boost sales, Matt has suggested that price reductions could have helped to change the stigma around second-hand EVs on the marketplace.

Matt added: "That's a really big missed opportunity that could and should be implemented and will also then shore up the used car market.

"There's been lot of negative publicity around the residual value position of electric cars because they have lost a lot value in the first few years as people dont want them as used cars, This is a great way to address two issues."