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Rachel Reeves set to hammer motorists with hated pay-per-mile car tax changes in Budget

Labour is planning to launch controversial new pay-per-mile car tax measures that could impact millions of drivers, despite the impact it would have on electric vehicle owners.

Reports suggest that the Chancellor is planning to introduce new pay-per-mile road pricing taxes to raise money for the Government.

According to The Telegraph, electric vehicle drivers will be hit with a new pay-per-mile tax, which is set to be announced in the upcoming Budget on November 26.

It is expected that the Government will levy a 3p per mile fee on top of other road taxes for electric vehicles.

The road pricing measures are set to be announced later this month, although they will be introduced in 2028, however, this is expected to be launched after a consultation.

Estimates suggest that electric vehicle owners will be charged an extra £250 a year once the measures are introduced.

The impact on electric car drivers could be severe, especially since EV drivers were required to pay tax for the first time this April, with the new standard rate requirements.

Owners of electric vehicles could also face additional charges when paying the Expensive Car Supplement if their vehicle costs more than £40,000.

Vehicle tax reminder and Chancellor Rachel Reeve

This is one of the largest changes made to the current tax regime, especially with the Treasury consistently denying that such a scheme would be introduced.

The move is expected to be introduced, considering the fall in revenue from fuel duty as more petrol and diesel motorists make the switch to electric vehicles.

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