Rachel Reeves has bitten the bullet and looks set to introduce a nationwide pay-per-mile car tax scheme. After years of speculation over when or how road pricing could be introduced, Labour looks set to confirm a charge for electric car owners starting in 2028.
Under the proposals, EV drivers will be charged 3p per mile on top of other road taxes from 2028, after a public consultation. Early predictions are that the charge will slap an extra £250 per year onto motorists’ bills in a hefty blow. The decision has been made to counter massive declines in fuel duty revenue as more road users make the switch away from petrol and diesel models.
It is estimated that as many as six million people could be driving EVs on Britain's roads by the time the change is introduced in three years. However, previous polls have suggested that a road pricing pay-per-mile scheme could be controversial, with the policy not as widely supported as Labour would probably like.
A recent study from Carwow found that just under half of road users (49%) believe that a pay-per-mile charge would be a fairer tax system than current Vehicle Excise Duty (VED) fees. To cap it off, almost a third (31%) admitted they would drive less to control their spending. Meanwhile, 14% said the change could make driving completely unaffordable for them.
A Tempcover survey of 2,000 UK drivers found that just 29% of respondents think motorists should be charged solely on the mileage driven.
Last year, a poll conducted by Express.co.uk found that the vast majority of individuals did not like the idea of a pay-per-mile system. The exclusive study found that a whopping 86.73% of the 21,000 respondents surveyed said they wanted the idea of a mileage system scrapped.
Just 8.83% of road users, accounting for just over 2,000 individuals, said they liked the idea of a 2p per mile car tax rate.
However, 1.49% said they agreed that up to a 4p per mile charge should be launched, suggesting that there is unlikely to be widespread appeal for the Chancellor's 3p per mile rate.