Drivers have been warned that the pay-per-mile tax system some experts are predicting will be introduced in the October Budget could leave many worse off.
If it is introduced, pay-per-mile road tax would charge drivers for the distance they travel (Image: Getty)
Motorists across the UK have been warned of a potential new charge that could be introduced under the October Budget.
With Prime Minister Sir Keir Starmer
Tom Banks, a car insurance expert at the price comparison service Go.Compare, highlighted that a growing number of motorists are concerned that the system would unfairly penalise some motorists.
He explained: “The proposed idea of a pay-per-mile tax system brings questions around the fairness of the scheme, particularly to those hwo must drive more often for various reasons. Our report shows that drivers are concerned about what this means for these road users.
“While a pay-per-mile method could discourage unnecessary vehicle use, considering those who need to drive will be very important to make sure they’re not being penalised for something out of their control.”
Some have argued that pay-per-mile tax will be fair on EV owners, who start paying in 2025 (Image: Getty)
Whilst the current Vehicle Excise Duty (VED) system of road tax charges motorists on the size of their car’s engine or how much carbon dioxide it produces, a pay-per-mile system would charge motorists on the number of miles they spend behind the wheel.
Supporters of a pay-per-mile tax system argue that it will make it fairer for owners of electric vehicles, who will need to pay for their road tax for the first time in 2025.
However, others have voiced their concern that it could be another way of making more money from drivers, making them think twice about using their car for some journeys.
Some Brits have shared concerns that pay-per-mile could cause them to avoid travelling (Image: Getty)
Currently, it is yet to be confirmed whether the Government will introduce a pay-per-mile tax system or the rate at which drivers will be charged, however some have proposed that it could be set at 15p per mile.
With the average UK motorist travelling 7,400 miles each year, that rate would mean that drivers would have to pay a staggering £1,100 per year in road tax unless the government introduced some kind of cap on the total payable.
In comparison to the current road tax system, that would be around the same rate as a vehicle that produces between 171 to 190g/km of CO2 – such as an Audi A6 or a Jaguar XF Sportbrake.
According to a study of 2,000 drivers conducted by Go.Compare, 53 percent of motorists do not want to see a pay-per-mile tax scheme introduced in the UK.
In particular, the company’s survey found that many think that certain drivers should be exempt from the tax, particularly those who depend on a private vehicle for their mobility.
44 percent said that disabled drivers should be exempt from the pay-per-mile system, whilst a further 30 percent stated that retirees should as well.
