Fears new UK pay-per-mile car tax system could ‘involve tracking people’s movements’

Significant reforms including a potential pay-per-mile car tax could be on the cards under Labour’s prospective government, a move that could have substantial effects on motorists. It is been reported that the Treasury is exploring ways to levy charges on drivers based on their mileage. A potential announcement by Chancellor Rachel Reeves regarding this new scheme could come as early as October 30 during Labour’s first Budget.

A Treasury spokesperson has confirmed: “We are committed to supporting our automotive sector as we transition to electric vehicles in order to meet our legally binding climate targets.” AA President Edmund King has shown support for a distance-based charge but insists on certain provisions, stating: “If in the future a system is introduced, it must have incentives for those dependent on their cars in rural areas, disabled drivers, and shift workers. The scheme should be overseen by an independent body and should not aim to raise more revenue than is currently raised from drivers.”

Auto Express gathered opinions from the Alliance of British Drivers too, with their former chairman Ian Taylor acknowledging financial concerns linked to electric vehicle adoption but expressed reservations about road pricing: “[We] do recognise that there is going to be a funding gap as vehicles go electric, but we still do not like the principle of road pricing.” Additional insights reveal that staff from HM Treasury have been pushing the issue behind closed doors. Adam Smith, who worked as chief of staff for Conservative ex-Chancellor Jeremy Hunt, told the Telegraph staff from HM Treasury frequently requested that the government ‘start[ed] preparatory work on a road pricing scheme’.”, reports Birmingham Live[1].

Mr Taylor responded to the reports, saying to auto retail outlet Auto Trader: “It’s regressive taxation, plus the means of implementation doesn’t come cheap and will involve tracking people’s movements all the time which comes with its own privacy concerns.”

Smith commented that with the change of administration and a financial deficit in the coffers of the incoming Labour[2] government, a pay per mile tax “will no doubt be back on officials’ agendas”.

References

1. ^ Birmingham Live (www.birminghammail.co.uk)
2. ^ Labour (www.chroniclelive.co.uk)