New pay per mile scheme set to 'hit the pockets' of these motorists in major blow
EXCLUSIVE: Motorists could soon be charged for every journey under a pay-per-mile fee instead of paying a standard yearly fee.
New pay-per-mile car tax changes which are expected to be announced in weeks will “hit the pockets” of disadvantaged drivers across the UK, according to an expert.
Andrew Jervis, CEO of online car repair marketplace ClickMechanic stressed officials needed to find a balance between hitting eco targets and pricing out road users.
He warned many motorists simply can’t afford to stop using their vehicles and will be “disproportionately” impacted by road tax changes.
A new pay-per-mile system is likely to replace Vehicle Excise Duty (VED) and fuel duty costs under one umbrella.
FairFuelUK founder Howard Cox has predicted an announcement about the system could be made as early as the Autumn Budget at the end of next month.
Speaking exclusively to Express.co.uk, Andrew warned: “It’s a good thing that officials are exploring new options to make sure the taxation system is as fair as possible in a world where vehicle emissions are a bigger factor than ever.
“However, we need to be careful to strike the balance between achieving our climate targets while not disproportionately hitting the pockets of those who aren’t able to or can’t afford to change their driving habits.”
Warnings around a pay-per-mile system have boiled to the surface in recent weeks.
It comes after Adam Smith, former chief of staff to ex-Chancellor Jeremy Hunt claimed the Treasury had undergone preparatory work around a new road pricing system.
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However, details around how much a per-mile charge could be set at have yet to be announced. The Resolution Foundation has previously suggested that fees could be charged around 6p per mile to use the roads.
Meanwhile, the Campaign for Better Transport mooted the idea of a 2p per kilometre charge. But, other specialists have also raised concerns that those who use the roads more will pay more.
High mileage drivers such as those travelling for work or individuals who live in more rural areas will be charged more every year than those in the city making fewer trips.
Iain Read, head of Editorial at Carwow stressed this was one concern under a pay-per-mile charge compared to a flat VED rate.
He told Express.co.uk: “Unsurprisingly, those who drive the most miles will pay the most.
“If you are a high mileage driver you could pay more under pay-per-mile than you do under the current VED system, low mileage drivers could pay less.”
