Rachel Reeves announced a tax hike on drivers in her Budget (Image: Getty)
A minister has refused to rule out pay-per-mile for all drivers after Rachel Reeves announced a tax hike on electric cars in her Budget. The measure will see motorists charged according to the miles they have travelled. Now, Simon Lightwood, Labour’s roads and buses minister, has not eliminated the possibility that this could be expanded to all cars. He told The Express: “Look, I think it’s important to say that this is about fairness. EV drivers don’t pay fuel duty at the pump, which other people do.”
He went on to explain that EVs also contribute to “wear and tear” on the roads, and it is essential that people who drive them pay their fair share. When pressed on whether this policy could be a gateway to further monitoring of other vehicles, the minister said: “Again, you’re speculating on future decisions. This is purely about electric vehicles and making sure that fairness is put at the heart of the system there.
Electric car drivers will be subject to a tax hike from 2028 (Image: Getty)
“I think it’s only fair that they also contribute to the wear and tear of our roads, and help to drive down that congestion.”
Reacting to what Mr Lightwood had to say, Howard Cox, motoring campaigner and founder of FairFuelUK, said that fuel duty revenues are falling, pay-per-mile pilot schemes on all vehicles, however they are fuelled, “will be introduced predominantly in major cities and on motorways”.
“I’m even getting rumours of pay per mile linked to vehicle emissions,” he added.
“That will, of course, be received by cyclists and EV drivers with a smug satisfaction.”
It has been reported that fuel duty revenues are falling, down £26million year-on-year, as drivers shift towards EVs and hybrids.
Mr Cox previously told The Express that the new EV fee is a “guinea pig” which could soon see all vehicles affected.
Howard Cox is the founder of FairFuelUK (Image: Collect photo)
He added that “digital ID control” of road movements could be next.
“I fear the 3p pay per mile on EVs is the thin end of the wedge that will hit all motorists, whatever the fuel is used,” Mr Howard said.
“FairFuelUK will continue to fight for lower road user taxes.”
But EVs could still save their owners an average of £1,450 per year compared with petrol cars despite the incoming mileage tax, according to new analysis.
The Energy and Climate Intelligence Unit (ECIU) think tank, which conducted the research, said second-hand EVs will deliver “very significant savings” despite the introduction of electric Vehicle Excise Duty (eVED) from 2028.
The study considered the nine most-viewed used EVs on online vehicle marketplace Autotrader, taking into account all expenses during a typical 10 years of ownership, such as the cost of purchasing and running the vehicles.
