Millions of drivers face 'stealth tax' under Labour costing £800 each

James Rodger
·2-min read
Motorists up and down the UK could end up paying up to £800 a year because of a 'stealth tax' deemed inevitable.
-Credit: (Image: Reach Publishing Services Limited)


A sneaky Labour Party government stealth tax could cost UK households an eye-watering £800 a year. Motorists up and down the UK could end up paying up to £800 a year because of a 'stealth tax' deemed inevitable.

Labour has vowed to press ahead with the controversial ban of sales of new petrol and diesel cars by 2030. But the push towards electric vehicles is expected to deprive the Treasury of around £30billion a year in missed fuel duty.

MailOnline analysis shows that, if the Labour Party government pressed ahead with pay-per-mile car tax to fill the fuel duty hole, a 1p-per-mile scheme would claw back £2.5 billion of this. With the average driver racking up between 6,000 and 8,000 miles a year, the Tony Blair Institute's proposed initial fee would see them hit with an annual fee in the region of £70.

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But would rise to £800 if the TBI's highest rate was implemented by Sir Keir Starmer. Fraser Brown, founder of automotive consultancy MotorVise, said the industry believes the figure was plucked from thin air. He said: "We have no idea where this 2030 target came from and it's political.

"Nobody in the industry anywhere thinks it's sensible. It would be so destructive and would lead to a government-controlled industry and we might as well be somewhere like Russia or China." To reach the zero emission vehicle (ZEV) target by 2035, 22 per cent of all new sales this year must be from battery electric vehicles.

John Rainford, UK manager for JOLT, an EV charging consultancy, told MailOnline that the target moving has 'little to no effect' on UK car manufacturers. He said: '" can't see what material impact it would have, they all should have been planning for 2030 back in 2020.

"We are not hearing any major noises that manufacturers are having any more concern about the 2030 target."

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