Rachel Reeves’ new pay-per-mile car tax scheme has been slammed as an “anti-motorist cash grab” with those living in certain parts of the country set to be more affected. The Chancellor is expected to confirm the introduction of a road pricing system at her Autumn Budget, with electric car owners in the firing line.
The new rule would charge EVs 3p per mile from 2028 on top of existing motoring taxes. The new rule is expected to generate £1.8billion in revenue for the Treasury but could raise bills by around £250 to £300 per year. Howard Cox, Founder of campaign group FairFuelUK, has blasted the changes, stressing that the rule will disproportionately affect certain road users.
It is possible that those individuals who travel long distances or live in the countryside and away from the city could be hit hardest.
Speaking exclusively to Express.co.uk, Howard said: “Pay-per-mile can never be a fair way to tax the UK’s 37 million drivers. The idea that driving more means paying more sounds appealing, but it will disproportionately impact drivers in a non-linear way.
“Chancellor Rachel Reeves is reportedly planning to introduce a pay-per-mile charge specifically for EV drivers in the upcoming Autumn Budget to address a fiscal gap caused by declining fuel duty income. A potential rate of around 3p per mile on top of existing road taxes, which could add £300 annually for the average EV owner driving about 10,000 miles a year.
“While it is accepted that EV drivers should, at last, contribute towards road usage, the proposed pay-per-mile charge is just another anti-motorists “net-zero cash grab. It will particularly penalise rural residents and those who regularly travel long distances.”
Details on how the system will work have yet to be finalised, but it is understood EV drivers will be asked to estimate the number of miles they plan to drive in the year ahead. Those who overestimate their mileage will see any money carried over into the following year. Drivers will need to top-up their payment if they have driven more than initially predicted.
However, there are fears that road users could soon be forced to submit pictures of their mileage odometers to prove claims. Although it is believed that tracking devices are not yet being considered at this stage, Howard stressed this could lead to privacy concerns among road users.
Howard explained: “Introducing such a system will raise privacy concerns, given the potential for in-car tracking, and add further layers of bureaucracy, especially if existing taxes, such as fuel duty or Vehicle Excise Duty (VED), are not abolished alongside the new charge. And we already have pay per mile, it’s called Fuel Duty plus VAT!”
