DVLA update on pay-per-mile car tax scheme that could be introduced

dailyrecord.co.uk:

The Government has issued an update on its plans for a pay-per-mile car tax, a scheme that would charge drivers a fee for every mile driven in an effort to address a shortfall in finances.Chancellor Rachel Reeves is facing calls to introduce a pay-per-mile system for UK drivers to prevent a significant loss of revenue from fuel duty.The Campaign for Better Transport (CBT), a charity advocating for improved public transport, has urged the Government to adopt this approach, stressing public support.

The proposal, according to reports in Lancashire Live, suggests that drivers of zero-emission vehicles (ZEVs), such as electric cars, should be charged based on their mileage.However, in response, a Government spokesperson officially declared: "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."The plan would exempt drivers who purchased a ZEV before the implementation date, encouraging the adoption of electric vehicles.

The Treasury currently generates around £25 billion annually from duties on petrol, diesel, and other fuels.However, this revenue is expected to decline as more drivers switch to ZEVs.