Motorists have dodged a massive £1,050 car tax rise with Rachel Reeves shelving pay-per-mile plans in the Autumn Budget.
The Chancellor didn’t mention a pay-per-mile charge to replace Vehicle Excise Duty and fuel duty charges in her statement.
There was widespread speculation a fee for petrol, diesel and electric cars was on the horizon with infrastructure tsar Sir John Armitt even suggesting it was “inevitable” in the run-up to the big day.
However, the Government had cooled on the idea in previous weeks as the Budget loomed with sources admitting they now had “no plans” to introduce road pricing.
Instead, Labour have promised to freeze fuel duty for the 14th consecutive year and make reforms to electric car VED rates set to come into effect from April 2025.
John Wilmot, CEO, car leasing comparison site LeaseLoco stressed that a pay-per-mile charge would have “raised costs” for motorists across the country.
Reacting to the Chancellor’s statement, he explained: “It’s also a relief for many car owners that Reeves resisted introducing a pay-per-mile vehicle tax, which would have raised costs for those most reliant on their vehicles.”
Ahead of the Budget, The Electric Car Scheme said that “early estimates” had put the fee at 15p per mile.
With the average driver travelling around 7,000 miles per year, a charge this high would have seen drivers pay a staggering £1,050 every 12 months.
However, Sir John Armitt predicted that a pay-per-mile charge could vary based on the time motorists travel and what roads they are driving on.
Pay-per-mile is likely to be unpopular with Britons as previous polls show a widespread distaste for the scheme.
A survey from Express.co.uk found that a staggering 6.73 percent of those polled, over 21,000 respondents, said they wanted the scheme axed.
Just 8.83 percent liked the idea of a pay-per-mile but only if a 2p per mile rise was introduced.
Ahead of the Budget, a Government spokesperson had told Express.co.uk: “We have no plans to introduce road pricing.
“We are committed to supporting our automotive sector as we transition to electric vehicles in order to meet our legally binding climate targets.”
