New pay-per-mile car tax bands could be introduced for 'one type' of vehicle

The new Labour Party government has ruled out a widespread pay-per-mile car system in the Autumn Budget.

Chancellor Rachel Reeves has been urged to introduce a pay-per-mile car tax system and bands on ONE type of vehicle. The new Labour Party government has ruled out a widespread pay-per-mile car system in the Autumn Budget.

But campaigners have called for electric vehicle drivers and motorists to face one. Ms Reeves has been urged to slap EV drivers with pay-per-mile tax in move tipped to raise £815m as the Labour government tries to plug a £20 billion black hole.

Campaigners have demanded a major U-turn over the introduction of a pay-per-mile car tax system on UK roads this October. The Campaign for Better Transport (CBT) encouraged Ms Reeves to announce a new road pricing system in her Autumn Budget at the end of October.

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Their report reads: “We calculate a 2p per kilometre charge (based on distance only therefore not requiring vehicle tracking) would raise £815million in the first year, but revenue will grow as ZEV update increases. It is also low enough to maintain the incentive to switch to EVs, and it can be coupled with exemptions for existing ZEV owners or caps for certain categories of vehicles such as for fleets or people in rural areas.

“Introducing distance-based taxation for ZEVs would ensure that the transition to cleaner vehicles does not undermine public finances.” The CBT added: “We are dealing on the Treasury to announce in the Budget the introduction of a simple pay-per-mole tac on ZEVs in lieu of fuel duty, while allowing for a sufficient transition period for drivers and businesses to prepare.”

The Treasury has recently ruled out the introduction of any pay-per-mile charge this October. A Government spokesperson said to Birmingham Live when approached for comment last month: “We have no plans to introduce road pricing.

“We are committed to supporting our automotive sector as we transition to electric vehicles in order to meet our legally binding climate targets.”