Labour 'pay-per-mile' car tax update as Government issues new 31-word update
The Government have issued a statement amid fears a pay-per-mile car tax system is being targeted by the Labour Party government - but what does it mean for drivers?
by James Rodger · ChronicleLiveThe Government has categorically dismissed concerns that a pay-per-mile car tax could be introduced. The Department for Transport confirmed to BirminghamLive this week: "We have no plans to introduce road pricing," and added, "We are committed to supporting our automotive sector as we transition to electric vehicles in order to meet our legally binding climate targets."
Had such a model been implemented, it would have potentially amalgamated the current road tax and fuel duty revenues into a single pay-as-you-drive fee. The Department for Transport (DfT) highlighted its decisions to introduce vehicle excise duty (VED) on electric cars from April 2025, and to push back the petrol-diesel phase-out to 2030 as its primary commitments for road transport.
Proponents argue that a change is necessary as more electric vehicles take to UK roads, and they believe the pay-per-mile system is the fairest option. However, some campaign groups argue that pay-per-mile will be costly and raise privacy issues over how drivers are monitored.
It's also been suggested that such measures are "regressive", disproportionately affecting those on lower incomes.
Andrew Jervis, CEO of ClickMechanic, warned that at least three groups of motorists - commuters, families, and those in rural areas - could be significantly affected under a pay-per-mile system, likely facing the highest fees, reports Birmingham Live.
Andrew has previously voiced his concerns, warning that motorists who seldom use their cars are still required to pay the same amount to drive on UK roads. He stated: "There are people out there who pay the current £190 Vehicle Excise Duty while barely using their vehicles, so a pay-per-mile scheme would give them some extra money in their pockets each year."
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If the proposed changes are implemented, drivers who rarely use their vehicles could potentially see a decrease in their annual car expenses. At present, the UK's Vehicle Excise Duty (VED) fee is set at a flat rate of £190 per year for petrol and diesel owners, irrespective of how frequently they utilise the roads.