Millions of UK drivers could face higher annual motoring costs under proposed car tax changes targeting large sport utility vehicles (SUVs).
Campaigners say the extra charges could help fund cheaper electric vehicle (EV) leases for lower-income households, including nurses and carers.
The proposal comes from the environmental campaign group Transport and Environment UK, which published new research in early 2026 calling for a “Large Vehicle Levy” on heavier SUVs.
The group argues that the money raised could support a subsidised EV leasing scheme costing some drivers as little as £77 per month.
The plan forms part of a wider push to accelerate the UK’s transition away from petrol and diesel vehicles while making electric cars more affordable for households with limited disposable income.
Why are campaigners calling for car tax changes on SUVs?
Campaigners say larger SUVs create more road wear, higher emissions, and safety concerns, particularly in urban areas.
According to Transport and Environment UK, SUVs are typically heavier and less efficient than smaller vehicles, meaning they contribute more to:
- Air pollution
- Road congestion
- Carbon emissions
The proposed Large Vehicle Levy would apply to the heaviest and most polluting SUV-type cars, adding an extra tax charge on top of existing vehicle taxes.
Eloise Sacares, senior researcher in UK vehicles policy at Transport and Environment UK, said: “Currently, with the cheapest EV lease at £141 a month, those on low incomes are priced out and unable to benefit from lower running costs.
By bringing leasing costs down to as low as £77 a month, we can ensure that EVs are accessible and reduce bills for all.”
Campaigners believe the policy could both discourage larger high-polluting vehicles and fund cleaner transport options.
How would the proposed EV social leasing scheme work?
The proposal centres on a “Social Leasing” scheme designed to make electric cars affordable for lower-income households.
Transport and Environment UK suggests two main options:
1. Pure Social Leasing
- Small electric vehicles
- Eight-year subsidised lease
- Monthly cost from £77
2. Bundled Lease
Designed for key workers and drivers who depend heavily on their cars.
Includes:
- Insurance
- Maintenance
- Charging costs
Estimated monthly cost: around £222.
Campaigners say the scheme would help households that currently spend under £100 per month on car costs, which is common among the bottom half of UK earners.
Why are electric cars still expensive for many UK drivers?
Despite falling prices, upfront costs remain a major barrier. Research cited by the campaign group shows:
| EV Cost Indicator | Amount |
|---|---|
| Cheapest EV lease currently available | £141 per month |
| Typical monthly car spending for lower-income households | Under £100 |
| Proposed social EV lease | From £77 |
The UK’s Zero Emission Vehicle (ZEV) mandate, introduced by the government, requires car manufacturers to ensure a growing percentage of their sales are electric vehicles.
Campaigners say this rule has increased the supply of cheaper EV models, but leasing prices remain too high for many drivers.
Could SUV parking charges influence UK policy?
Some European cities have already introduced measures targeting larger vehicles.
In Paris, residents voted to triple parking charges for SUVs, meaning some drivers now pay:
- €18 per hour (about £15.63) for parking.
The city’s mayor, Anne Hidalgo, has also raised the possibility of banning SUVs entirely from the French capital due to safety and pollution concerns.
Transport campaigners argue that similar measures in UK cities could help:
- Reduce congestion
- Improve road safety
- Cut urban emissions
What evidence supports the social EV leasing model?
France launched a social EV leasing programme in December 2023, aimed at helping lower-income drivers switch to electric vehicles.
Demand quickly exceeded expectations.
| Programme Detail | Figures |
|---|---|
| Initial vehicle allocation | 25,000 |
| Applications received | 90,000 within six weeks |
Campaigners say this shows strong demand from drivers who want to replace petrol and diesel cars but cannot afford EVs.
Could a scrappage scheme lower EV costs further?
The report also proposes a “Scrappage-for-Leasing” discount.
Under the idea:
- Drivers scrap an older petrol or diesel vehicle
- They receive £2,000 in leasing credit
- The discount is applied to EV monthly payments
This could reduce EV lease costs to around £156 per month, according to campaign estimates.
Ms Sacares said: “The best thing about social leasing for electric vehicles is that it can be sustainably funded by a new Large Vehicle Levy on large SUVs.”
She added the levy could help around 179,000 UK households per year access the scheme.
