Government issues 31-word update over new pay-per-mile car tax

The government has RULED OUT a pay-per-mile car tax system amid fears the Labour Party government could be targeting one.

The government has issued a definitive statement over fears pay-per-mile car tax could be introduced. The government has RULED OUT a pay-per-mile car tax system amid fears the Labour Party government could be targeting one.

“We have no plans to introduce road pricing," the Department for Transport told BirminghamLive this week. “We are committed to supporting our automotive sector as we transition to electric vehicles in order to meet our legally binding climate targets.”

If the model had been introduced, it would have potentially seen the current road tax and fuel duty revenues rolled into one pay-as-you-drive fee. The Department for Transport (DfT) cited the decisions to introduce vehicle excise duty (VED) on electric cars from April 2025, and move the petrol-diesel phase-out back to 2030 as its focussed commitments for road transport.

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Supporters believe a change is needed as more electric vehicles hit UK roads and supporters of this system believe the pay-per-mile is the fairest option. However, some campaign groups claim that pay-per-mile will be expensive, and comes with privacy concerns over how drivers are tracked. It’s also been suggested that such measures are "regressive" targeting people on lower incomes the most.

Andrew Jervis, CEO of ClickMechanic said at least three groups of motorists could be massively impacted under a pay-per-mile system with commuters, families and those in rural areas likely to face the highest fees.

Andrew spoke out and previously warned that motorists who barely use their cars still have to pay this amount to drive on UK road. He said: "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.”

Drivers who do not get behind their wheel often will "likely" notice a reduction in their annual car bills if the change is brought in. Currently, the UK's Vehicle Excise Duty (VED) fee is set at a flat £190 per year for petrol and diesel owners regardless of how often they use the roads.