New pay-per-mile road tax system means drivers of these cars would pay £600 in Labour plan

New pay-per-mile car taxation bands mean drivers with these cars volition wage £600 (Image: PA)

Motorists are being warned they mightiness look sky-high charges exceeding £190 nether a freshly mooted pay-per-mile car taxation strategy floated by the caller Labour leadership. The Chancellor, Rachel Reeves, is tipped to unveil the extremist pay-per-mile car taxation perchance travel October during her Autumn Statement.

ClickMechanic CEO and laminitis Andrew Jervis antecedently warned that contempt seeming beneficial, immoderate drivers could extremity up shelling retired adjacent MORE than what they presently bash for Vehicle Excise Duty (VED) - amounting to implicit £190. Under the existent regime, hybrid vehicles bask a humble £10 reprieve connected VED, and yet for those owners whose cars had a retail terms supra £40,000 erstwhile archetypal sold, a 'premium car tax' levy looms, adding an yearly other of £410 to the vehicle's VED bill, inflating it to a whopping £600.

Meanwhile, substance retailer nett margins hover astatine astir 13 pence for petrol and 15 pence for diesel based connected the RAC's Fuel Watch information - indicators importantly higher than the humanities 8 pence average.

There's buzz that policymakers volition inevitably revisit the conception of pay-per-mile taxation, suggests Birmingham Live. Its a strategical pivot supported by AA Chairman Edmund King, who has noted: "The clip is close [for roadworthy pricing] due to the fact that radical are retired determination and they themselves spot the benefits of walking and cycling and running".

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King expressed his views to Auto Express, saying: "If successful the aboriginal a strategy is introduced, it indispensable person incentives for those babelike connected their cars successful agrarian areas, disabled drivers, and displacement workers". He further insisted, "The strategy should beryllium overseen by an autarkic assemblage and should not purpose to rise much gross than is presently raised from drivers."

The government's arguable pay-per-mile roadworthy pricing connection could pb to each mile driven being monitored done GPS trackers, ANPR cameras, oregon smartphone apps. Privacy campaigners are sounding the alarm implicit what they picture arsenic large "privacy concerns" tied to the projected system.