The Government has released an official update on the proposed pay-per-mile car tax, a scheme that would charge drivers for each mile they travel, aiming to fill a gap in Government finances. Chancellor Rachel Reeves is being encouraged to introduce a pay-per-mile system for UK motorists to prevent a financial “black hole” due to lost fuel duty revenue.
The public transport charity, Campaign for Better Transport (CBT), made this appeal, asserting it would be supported by the public. They propose that zero emission vehicle (ZEV) drivers, such as those with electric cars, should be charged based on their mileage.
Under this proposal, ZEV owners prior to the implementation date would be exempt, promoting the transition to electric vehicles. Fuel duties currently generate approximately £25 billion annually for the Treasury, a figure expected to decrease as more drivers switch from traditional to ZEVs.
However, previous governments have found the idea of introducing per-mile charges, or road pricing, politically challenging. Silviya Barrett, CBT’s director of policy and campaigns, stated: “ZEV drivers should fairly contribute towards vehicle taxation” and advocated for a “simple charge” based on “regular odometer readings”.
She acknowledged: “We fully appreciate that such a change would be perceived as difficult and criticised by the opposition and by certain representative groups. “However, our research demonstrated the general public supports such a move. ” The motoring services giant, RAC, has warned that without a new taxation system, billions could be lost. They demand a replacement that is “simple and fair to drivers of both conventional and electric vehicles”.
A Government spokesperson clarified in an official announcement: “We have no plans to introduce road pricing, reports Lancs Live.
We are committed to supporting our automotive sector as we transition to electric vehicles in order to meet our legally binding climate targets. “.
