Ford boss Lisa Brankin warns in opposition to taxing electrical automobiles | EUROtoday

Taxes on electrical autos could put drivers off shopping for them at a time when demand has “lost momentum”, Ford’s UK boss has warned.

It comes after the BBC reported Chancellor Rachel Reeves may very well be contemplating new levies on EVs within the upcoming Budget.

Ford UK’s managing director Lisa Brankin instructed the BBC: “It’s certainly not the right time to do it.”

A Treasury spokesperson stated: “Fuel duty covers petrol and diesel, but there’s no equivalent for electric vehicles. We want a fairer system for all drivers.”

The Chancellor has been reported to be contemplating a brand new pay-per-mile cost for electrical autos from 2028.

Ms Brankin instructed the BBC’s Big Boss Interview podcast: “That [policy]in the face of really fragile demand for electric vehicles, is just another brake.”

The admin job of calculating their mileage would put potential EV house owners off making the swap, she says.

“It’s really easy to sell people things they want,” she says. “It’s hard to sell people things they don’t want.

“Electric autos in some situations have gone from being an awesome factor to being one thing that we’re making an attempt to push folks into.”

Ford sells the UK’s most popular vehicle, the Ford Puma, while its commercial van the Transit holds the second-most-sold ranking.

For years its Focus model was the UK’s most-popular, but the US company axed the hatchback and the last Ford Focus rolled off factory lines in Germany last week.

It employs around 6,000 people in the UK, with an engine plant in Dagenham and a transmission factory in Halewood. It hasn’t manufactured a vehicle here since 2013.

Ford like other car makers is under pressure to meet the UK’s net zero plan, 80% of new car sales must be EVs by 2030 or face fines.

The government has reinstated a grant worth up to £3,750 to encourage drivers to buy electric vehicles.

Ford would not be able to reach that 80% target without government help, such as the grant, Ms Brankin said.

Sales figures from car industry body, the Society of Motor Manufacturers and Traders (SMMT) show how far car makers have to go to reach the target.

Fully-electric vehicles made up around 22.4% of total new car sales, data for 2025 up to 31 October shows. This time last year it was 18.1%.

In September, the UK new car market experienced its best performance since 2020, driven by a surge in EV sales which hit a record high, according to SMMT figures.

However, Ms Brankin pointed to heavy discounting across car sales forecourts as well as a lower resale value in the second-hand EV market as indicators that the market was “distorted”.

“When that [target] was set various years in the past, the outlook for demand round electrical autos was buoyant and there gave the impression to be momentum behind electrical autos. What we’re seeing now could be that buyer demand will not be in keeping with that ambition,” Ms Brankin said.

A large share of new EVs are sold to businesses for their employees and they benefit from lower rates of “firm automotive tax” compared with diesel or petrol-fuelled options.

Ms Brankin has urged the Chancellor to retain this tax benefit of companies “greening” their automobile fleets.

The shift to EVs could have consequences for the close-to 1,800 staff at the Ford diesel engine plant in Dagenham, which was the largest car factory in Europe when it was first built.

Ms Brankin said Ford was yet to make any decisions about the future of the plant, which will build diesel engines up until 2030.

“We’re working actually arduous on and what the following lifetime of Dagenham seems to be like, ” she said but there was “nothing that we have settled on in the mean time.”