Drivers could face £60 charge to 'drive home' under new VED tax

Drivers could face a £60 charge to "drive home" under proposed changes to Vehicle Excise Duty (VED). Car tax could be hiked from next year under a revamped system which sees motorists fork out per mile they drive, rather than a flat rate.

Research by GM Direct Hire warned drivers charged up to 15p per mile for long-distance journeys a cost that could significantly impact the expense of driving home for Christmas. For a family travelling from London to Manchester (a 200-mile journey one way), the round trip would total 400 miles.

With the pay-per-mile rate set at 15p per mile, families could face an additional £60 in tax for the journey. For those travelling further, such as from London to Edinburgh (a 400-mile journey), the tax could rise to £120 for the round trip alone.

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Majid Ismailzada, marketing director and motoring expert at GM Direct Hire, said: "It's clear that many families are concerned about the impact of this new tax. With the cost of fuel and other expenses rising, the added burden of a pay-per-mile tax could make long-distance travel over the holidays less appealing for many."

Manchester resident Amy Harker, who is a single mother to a 4 year-old-boy, has voiced her concerns about the new pay-per-mile tax and its timing around the festive period. "As a single mother, every penny counts, and with rising living costs, adding an extra £60 just for driving home to see family makes it difficult to justify the trip," she explained. "I'm now reconsidering our travel plans this year, as the tax alone could take away from gifts or other essentials for my son."

Edmund King, Chairman of the AA, stated the system could help to encourage more motorists to choose sustainable forms of transport but highlighted that it must be fair for all road users. He explained: "The time is right [for pay-per-mile] because people are out there and they themselves see the benefits of walking and cycling and running.

"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. The scheme should be overseen by an independent body and should not aim to raise more revenue than is currently raised from drivers."