Drivers doing this mileage must pay £444 under new pay-per-mile car tax

Drivers doing this mileage must pay £444 under new pay-per-mile car tax
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Some motorists "won't be able to drive" or remain on the road due to the imminent introduction of a new pay-per-mile car tax system, ClickMechanic's Andrew Jervis has warned. He issued his caution amid reports of the Labour Party government's plans for the scheme.

The pay-per-mile road pricing is a system under consideration which would see drivers charged based on the distance they cover on public roads, instead of the current method which relies on how much petrol or diesel purchasers use.

"It's a good thing that officials are exploring new options to make sure the taxation system is as fair as possible in a world where vehicle emissions are a bigger factor than ever," Andrew indicated during a conversation with the Daily Express newspaper.

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He also mentioned to the national paper: "However, we need to be careful to strike the balance between achieving our climate targets while not disproportionately hitting the pockets of those who aren't able to or can't afford to change their driving habits."

According to estimates, the average driver could incur costs of about £444 annually (considering the UK's average vehicle mileage is between 5,000 and 8,000 miles), while those in rural areas clocking up 10,000 miles could face charges around £600. Supporters of the proposal argue it could help bridge the substantial £22 billion deficit caused by the Conservative Party, reports Birmingham Live.

From April 2025, the Labour Party Government plans to impose Vehicle Excise Duty on EV owners. This move is aimed at maintaining Treasury revenue from car tax as more drivers switch to electric models.

Many predict that Chancellor Rachel Reeves will announce a fuel duty increase in the upcoming Budget on October 30.

These predictions follow the Labour Party's cautious approach to the subject during the election campaign earlier this year.