The UK government has provided an official response to the proposed introduction of a pay-per-mile car tax, a controversial scheme that would require drivers to pay for each mile they drive. The implementation of this tax is aimed at addressing a shortfall in government finances, with Chancellor Rachel Reeves being urged to consider such a system to offset lost revenue from fuel duty.
The Campaign for Better Transport (CBT), a public transport charity, has advocated for the introduction of a pay-per-mile driving tax. The group believes that this approach would garner public support and ensure that even zero emission vehicle (ZEV) drivers, including those with electric cars, contribute to road maintenance costs. As per the proposal, ZEV owners would be exempt from the charges if they already possess their vehicles before the tax is enforced, in a bid to encourage the adoption of electric vehicles.
Currently, duties on petrol, diesel, and other fuels generate around £25 billion annually for the Treasury. However, with an increasing number of drivers transitioning to ZEVs, this revenue is expected to decline. Despite the financial implications, the concept of road pricing or per-mile charges has been considered politically sensitive by previous governments.
Silviya Barrett, Director of Policy and Campaigns at CBT, emphasised the importance of ZEV drivers contributing to vehicle taxation. She suggested a straightforward charge system based on regular odometer readings. While acknowledging the potential opposition to such a change, including from certain interest groups, Barrett highlighted research showing public support for such a move.
The RAC has echoed the need for an alternative taxation model to prevent substantial revenue losses. The organisation stressed the importance of a fair system that considers both conventional and electric vehicle owners. However, a Government spokesperson indicated that there are currently no plans to implement road pricing, underlining the government’s commitment to supporting the automotive sector’s transition to electric vehicles to meet climate targets.
In conclusion, the debate over introducing a pay-per-mile car tax continues to provoke discussions among policymakers, advocacy groups, and the public. While the government remains focused on promoting electric vehicle adoption, the need for sustainable funding mechanisms for road maintenance and infrastructure development remains a pressing issue in the UK.