Car tax pay per mile changes would be ‘unbalanced’ between city centre and rural drivers

Experts have warned a new pay per mile system could get “extremely expensive” for those who commute from outside major cities on a daily basis. The Chancellor is said to be considering a pay per mile scheme as a way to fill a £40billion public spending deficit expected with the transition to electric cars.

As more road users make the switch to electric-powered machines, less revenue will be generated through Vehicle Excise Duty (VED) and fuel duty charges.

Speaking to Express.co.uk, Tom Leathes, spokesperson for Motorway.co.uk said charges for petrol and diesel owners will “stack up one way or another”.

He said: “It could also be balanced out with another thing around the Clean Air Zones.

“If you live in London you might pay less than a pay per mile but you’ve got the additional Clean Air Zone fees on top of that.

READ MORE: Hundreds of drivers could be exempt from car tax changes

A single larger zone will incorporate boroughs up to the North and South Circular Road in a major expansion for the scheme.

Mr Leathes said the new schemes were “a little bit confusing” but warned the impact would not be as big as many had made out.

He told Express.co.uk: “I do think it’s a little bit confusing but at the same time I think we should put it in perspective.

“They are only being implemented in a few cities, Bath, Birmingham and London.

“We’re only talking about old cars and only in a small number of cities and there’s quite a lot of things that will limit those charges.”

Campaigners from the UK Energy Research Centre (UKERC) have called for a new tax introducing extra charges for those buying petrol and diesel vehicles. 

If introduced, the system would see a 50 percent purchase tax introduced on the most highly polluting models from 2021. 

A charge would then be introduced to less polluting models on a sliding scale until only fully-electric cars were exempt from 2030. 

source: express.co.uk