Motorists are being warned they might face sky-high charges exceeding £190 under a freshly mooted pay-per-mile car tax scheme floated by the new Labour leadership. The Chancellor, Rachel Reeves, is tipped to unveil the radical pay-per-mile car tax possibly come October during her Autumn Statement.

ClickMechanic CEO and founder Andrew Jervis previously warned that despite seeming beneficial, some drivers could end up shelling out even MORE than what they currently do for Vehicle Excise Duty (VED) – amounting to over £190. Under the current regime, hybrid vehicles enjoy a modest £10 reprieve on VED, and yet for those owners whose cars had a retail price above £40,000 when first sold, a ‘premium car tax’ levy looms, adding an annual extra of £410 to the vehicle’s VED bill, inflating it to a whopping £600.

Meanwhile, fuel retailer profit margins hover at around 13 pence for petrol and 15 pence for diesel based on the RAC’s Fuel Watch data – indicators significantly higher than the historical eight pence average.

There’s buzz that policymakers will inevitably revisit the concept of pay-per-mile taxation, suggests Birmingham Live. Its a strategic pivot supported by AA Chairman Edmund King, who has noted: “The time is right [for road pricing] because people are out there and they themselves see the benefits of walking and cycling and running”.

King expressed his views to Auto Express, saying: “If in the future a system is introduced, it must have incentives for those dependent on their cars in rural areas, disabled drivers, and shift workers”. He further insisted, “The scheme should be overseen by an independent body and should not aim to raise more revenue than is currently raised from drivers.”