New pay-per-mile car tax bands mean £74 charge for 'average mileage'

New pay-per-mile car tax bands mean £74 charge for 'average mileage'
-Credit: (Image: Reach Publishing Services Limited)


New pay-per-mile car tax bands would see drivers face a 1p charge per mile under a Labour Party government system, if the government bows to pressure from Sir Tony Blair's thinktank. The Tony Blair Institute has suggested the Chancellor introduce a new pay-per-mile system of 1p a mile for cars and vans, 2.5p for lorries and 4p for heavy goods vehicles.

The thinktank goes on to recommend that the charge will be payable based on mileage readings taken during annual MOTs. It means for someone who drives 7,400 miles a year, which is the UK average, the charge would be £74.

The thinktank then recommends a steady increase which would see the price per mile rising to about 10-12p a mile by 2050, according to The Guardian. 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.”

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Research by IAM RoadSmart shows that the two biggest concerns for motorists are either cost, or the state of the roads. The charity calls on the Chancellor to maintain the current the 5p cut that was introduced in 2022, which has helped motorists save around £50 a year. If the rate is increased, this should be partially ringfenced into repairing Britain’s crumbling road network and filling in potholes.

IAM RoadSmart Director of Policy and Standards Nicholas Lyes said: “Hard-done-by motorists will find any increase in fuel duty a bitter pill to swallow, given that they’re already being drained by hefty insurance premiums, not to mention higher repair costs after driving through the country’s crater-ridden roads.

“At the very least, if fuel duty is to increase, the Chancellor should ringfence this money to repair Britain’s crumbling road network. Not only will this save motorists money in repairs, it will more importantly save lives, especially for those travelling on two wheels where the impact of hitting a pothole is likely to be far more severe.”