Some motorists “won’t be able to drive” or stay on the road due to the new pay-per-mile car tax system set to be introduced in the coming weeks, according to Andrew Jervis from ClickMechanic. The proposed system will see drivers taxed based on the distance they travel on public roads, a stark contrast to the current fuel tax which is based on the amount of petrol or diesel purchased.
Speaking to the Daily Express, Andrew said: “It’s a good thing that officials are exploring new options to make sure the taxation system is as fair as possible in a world where vehicle emissions are a bigger factor than ever,” However, he warned: “However, we need to be careful to strike the balance between achieving our climate targets while not disproportionately hitting the pockets of those who aren’t able to or can’t afford to change their driving habits.”
The average driver could face costs of around £444 a year (based on the average annual mileage of a vehicle in the UK being between 5,000 and 8,000 miles), while those living in rural areas covering 10,000 miles annually could face bills of approximately £600. Supporters argue it would help plug the £22billion deficit in the country’s finances left by the Conservative Party.
From April 2025, the Labour Party Government plans to impose Vehicle Excise Duty on EV owners. This move is aimed at maintaining Treasury revenue from car tax as more drivers switch to electric models.
Many predict that Chancellor Rachel Reeves will announce a fuel duty increase in the upcoming Budget on October 30, reports Birmingham Live.
These predictions follow the Labour Party’s cautious approach to the subject during this year’s earlier election campaign.