Drivers have been warned that they may soon face a significant tax increase if they take their car to London.
With Prime Minister Sir Keir Starmer warning the public that the upcoming October Budget will be “painful”, some have predicted the way vehicles are taxed will change to a pay-per-mile system.
Edmund King, Chairman of the AA, stated the system could help to encourage more motorists to choose sustainable forms of transport but highlighted that it must be fair for all road users.
He explained: “The time is right [for pay-per-mile] because people are out there and they themselves see the benefits of walking and cycling and running.
“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.”
Currently, Vehicle Excise Duty (VED), better known as road tax, is calculated by either the size of the engine or the amount of carbon dioxide it produces.
However, under a pay-per-mile system, drivers would be charged a unique amount that is based on the distance they travel in their car each year.
As a result, drivers who travel to see loved ones in other parts of the country could be penalised if they decide to take their own vehicle.
Whilst it is currently unknown how much drivers would be charged if a pay-per-mile system is introduced, some experts have predicted a charge of 15p per mile motorists travel.
If drivers are charged that sum, it would mean that motorists travelling from Birmingham city centre to central London and back, a 262-mile round trip, would cost £39.30.
Concerningly, a drive from Edinburgh to London and back, which covers around 830 miles, would set drivers back a shocking £124.50.
If a pay-per-mile system of road tax is introduced in the October Budget, drivers may think twice about using their car to see loved ones or go on a staycation in another part of the UK.
However, in order to avoid unnecessarily expensive tax charges, motorists should make sure that the routes they choose have the shortest mileage, even if they are not the fastest.
Drivers meeting up with someone may also wish to consider meeting them at a halfway point, which would spread the cost of the journey.
