A leading motoring expert has outlined how potential pay-per-mile car tax changes could be introduced in the upcoming Budget and what it would mean for drivers.
Chancellor Rachel Reeves will unveil the Autumn Budget to the nation next week with many predicting what will be announced for motorists amid warnings of “tough decisions”.
One of the most controversial measures which could be introduced is road pricing, such as pay-per-mile car taxes. These have been considered for a long time and could soon be a reality.
It comes as Jeremy Hunt’s former top adviser said civil servants were told to “start preparatory work on a road pricing scheme” over fears the Government would lose billions of pounds as drivers switch to electric vehicles.
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Rachel Reeves could introduce new car tax changes in the upcoming Budget
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Estimates have varied about how much dwindling fuel duty receipts could cost the Government over the coming years, with some suggesting it could be as much as £35billion.
To combat this, road pricing measures have been put forward as a suitable alternative. This would see motorists charged for every mile they drive, with proposals ranging from 1p per mile to as much as 15p per mile.
Writing on X, formerly known as Twitter, Howard Cox, founder of FairFuelUK, made his feelings clear on the potential introduction of pay-per-mile car tax changes.
He wrote: “It must only be introduced if it replaces all fuel duty, VAT, and VED. Drivers must not pay more than they are paying now. All road users must pay.
“But it must not be intrusive either. Best pay-per-mile, is to keep fuel duty, scrap 2030 ban and net zero.
“Focus on generating economic growth and incentivising clean fuel technology without draconian bans or Government interfering in markets.”
The potential rollout of pay-per-mile car taxes could see motorists pay more tax than they already do, especially if they drive long distances for work on a regular basis.
Speaking previously to GB News, an HM Treasury spokesperson said: “We have no plans to introduce road pricing.
Howard Cox has previously warned of fuel duty hikes in the Budget
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“We are committed to supporting our automotive sector as we transition to electric vehicles in order to meet our legally binding climate targets.”
The Labour manifesto before the election stated that it would look to accelerate the rollout of charge points across the country in a bid to reach the target goal of 300,000 chargers by 2030.
Other plans included restoring the phase-out date of 2030 for new cars with internal combustion engines, and supporting buyers of secondhand electric cars by standardising the information supplied on the condition of batteries.
Chancellor Rachel Reeves is expected to unveil new plans for motorists in the October 30 Autumn Statement, many of which could build on pledges made in the election manifesto.
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The Budget could see extra funding for pothole repairs
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Transport Secretary Louise Haigh recently announced that a new taskforce would be set up to support drivers and tackle expensive car insurance prices.
Other possible changes in the Budget could include a cut to the fuel duty freeze, additional funding for potholes and the introduction of the long-awaited PumpWatch fuel price checker.