Motorists face £190+ charges under new Labour car tax plan
Labour proposes pay-per-mile tax; privacy concerns and cost impacts emerge
Motorists may face charges exceeding £190 under a proposed pay-per-mile car tax by the new Labour Party government. Chancellor Rachel Reeves might introduce this tax as early as October during her Autumn Statement.
Andrew Jervis, CEO of ClickMechanic, has warned that some drivers could end up paying more than the current Vehicle Excise Duty (VED) – over £190. Currently, hybrid cars get a small discount of £10, but vehicles with an initial list price above £40,000 may attract an additional ‘premium car tax’ fee.
This premium fee could add £410 to the annual VED, raising the total to £600. Data from the RAC’s Fuel Watch shows that the current average profit margin for fuel retailers is around 13 pence for petrol and 15 pence for diesel, significantly higher than the long-term average of eight pence.
The pay-per-mile tax is expected to return to officials’ agendas. AA Chairman Edmund King has previously remarked that road pricing could be timely, as many people recognise the benefits of walking and cycling.
King mentioned that any future system should include incentives for those reliant on cars in rural areas, disabled drivers, and shift workers. He also suggested that an independent body should oversee the scheme to ensure it does not generate more revenue than currently collected from motorists.
The government’s plan might involve GPS trackers, ANPR cameras, or smartphone apps to monitor mileage. Privacy advocates have raised significant concerns about potential privacy infringements.
What Other Media Are Saying
- Coventry Telegraph: Upcoming pay-per-mile car tax changes could make driving more costly, prompting some to abandon cars in favor of trains, particularly with rising motoring expenses and concerns over escalating costs. (Read more)
- **Birmingham Mail**: The new pay-per-mile car tax bands starting at £190 in October are expected to impact families more, raising concerns about low-income households and traffic congestion amid the UK’s transition to electric vehicles. (Read more)
- Express.co.uk: Motorists could face per-mile fees, impacting rural drivers and high-mileage users, with experts warning of disproportionate costs and the need for balanced taxation and incentives. (Read more)
Frequently Asked Questions
Here are some common questions asked about this news
What is the proposed pay-per-mile car tax?
A new tax system where motorists pay based on the miles they drive.
How much could the pay-per-mile car tax cost?
Charges could exceed £190, potentially making it more expensive than the current VED.
Will hybrid car owners get a discount under the new system?
Hybrid cars currently get a £10 discount, but it’s unclear if this applies to the new system.
What are the privacy concerns with the pay-per-mile tax?
Privacy advocates worry about GPS trackers, ANPR cameras, and smartphone apps monitoring every mile.
Will there be any incentives for certain drivers under the new system?
Yes, incentives are suggested for rural drivers, disabled drivers, and shift workers.
