Labour makes decision over new pay-per-mile car tax system
Pay-per-mile car tax changes will NOT hammer British drivers as the Labour Party government makes a major Budget decision. Chancellor Rachel Reeves will unveil Labour's first Budget later this month on October 30 in her first landmark address.
Labour has made a decision ahead of the upcoming Autumn Budget - amid swirling reports drivers could be charged per mile. A Government spokesperson said: "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."
A spokesperson for HM Treasury previously said: “Following the spending audit, the Chancellor has been clear that difficult decisions lie ahead on spending, welfare and tax to fix the foundations of our economy and address the £22billion hole in the public finances left by the last government. Decisions on how to do that will be taken at the Budget in the round.”
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To avoid a sharp rise in the cost of taxing a vehicle, Tom Church, Co-Founder of LatestDeals.co.uk, recommended that drivers consider ways to make their journeys shorter. He advised: "If this pay-per-mile tax comes into force, we're all going to have to become like Amazon delivery drivers with super smart routing.
"There's a free online tool called MapQuest, where if you go to Route Planner you can enter multiple destinations and it'll tell you the shortest way." He added: "Mileage tracking apps like MileIQ or TripLog monitor your driving habits and identify ways for you to reduce your miles.
"But the problem is, this is way beyond the skill set of many people, and the tax will punish those that have no alternative." Tom also highlighted that there are services that will track drivers and share suggestions that can help them reduce their mileage.