The proposed pay-per-mile car tax in the UK has faced criticism for being ‘regressive’. The new Labour government is considering implementing this tax, where motorists would be taxed based on their mileage. Chancellor Rachel Reeves is expected to introduce this scheme in their first Budget on October 30. The Treasury aims to support the automotive sector’s transition to electric vehicles to meet climate targets.
While AA President Edmund King has shown some support for the idea, emphasising the need for incentives for rural, disabled, and shift-working drivers, others have expressed concerns. The Alliance of British Drivers has opposed the scheme, citing it as regressive taxation with privacy implications. Former Conservative chief of staff Adam Smith highlighted that the government may consider a pay-per-mile tax to address economic gaps.
The Alliance of British Drivers expressed their reservations, especially regarding the implications of tracking individuals’ movements and the potential privacy issues arising from the implementation of such a scheme. The discussion around road pricing continues to spark debate among various stakeholders in the UK.
The potential introduction of a pay-per-mile car tax in the UK is part of the government’s broader initiatives aimed at supporting the transition to electric vehicles and meeting climate targets. As discussions unfold and stakeholders share their perspectives, the implications of such a scheme on motorists and the wider economy remain under scrutiny. With the first Budget of the new Labour government approaching, the decision on the pay-per-mile car tax is anticipated to be a significant part of the fiscal policy agenda.