Everything you need to know about who will pay more under pay-per-mile, and who will pay less
Motorists could be facing a new pay-per-mile car tax from October if the Labour Party comes to power, with early estimates suggesting it could cost each driver around £190. The proposed changes by Rachel Reeves, the potential new Labour Chancellor, aim to create a "fairer" system nationwide.
The Campaign for Better Transport , along with a coalition of 37 organisations, is advocating for this reform, which includes various transport industry groups.A pay-per-mile scheme is designed to compensate for the anticipated decrease in road tax revenue and discourage unnecessary car use. This could lead to reduced congestion, particularly if variable charging rates during peak traffic times are implemented.
The dialogue continues with the group proposing that the most easily implemented first step would be to introduce a nominal pay-per-mile tariff on zero-emission vehicles, while establishing a transition period where current drivers would be exempt. Andrew explained that drivers who seldom use their cars are still required to pay the same amount to use UK roads. He observed: "There are people out there who pay the current £190 Vehicle Excise Duty while barely using their vehicles, so a pay-per-mile scheme would give them some extra money in their pockets each year."
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