Pay-per-mile tax means drivers born in these years have to 'sell cars'

A pay-per-mile car tax in the future could theoretically force drivers, road users and motorists OFF the road. The new Labour Party government has ruled out a pay-per-mile car tax system - for now, at least - after a backlash to calls for one.

The tax measure was mooted to be talked about ahead of the Autumn Budget. A recent survey by car finance lender Carmoola revealed the extent of the financial strain on British drivers with nearly a third (29 per cent) of respondents reported having to reduce their driving in 2024 due to escalating expenses.

Almost a third (30 per cent) of 17 to 24-year-olds and a quarter (25 per cent) of 35 to 44-year-olds indicated they are under financial pressure to sell their cars. Aidan Rushby, founder and CEO of Carmoola said: "The news about the introduction of a pay-per-mile road tax could exacerbate this trend driving more motorists off the road.

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“It's clear that Brits are already struggling, and the new initiative, planned to launch in October, will have serious implications, especially for younger drivers and those living in rural areas who rely on their cars for essential activities like work and education.”

He added: “With limited public transportation options in these regions, such a tax risks pushing more people to the brink, making it even harder for them to maintain the mobility they need. It's crucial that any new policy is designed with these challenges in mind to avoid disproportionately impacting those who are most vulnerable."

He said: "It's a challenging time, and traditionally, costs such as taxes are outside of motorists' control. However, this new scheme could change that. The amount you drive is something Brits can control, so while many drivers will struggle with the new initiative, others may benefit."

“Carpooling or sharing fuel costs, and refinancing a car loan to a better rate can all significantly reduce the annual cost of motoring," Rushby stated.