British drivers could soon be facing a fundamental shift in how they pay for using the roads, with proposals for a new national road pricing scheme that would charge motorists 2p for every mile they drive.
The End of Traditional Road Tax?
The new system would represent the most significant change to motoring taxation in decades, potentially replacing both fuel duty and Vehicle Excise Duty (VED) with a single, distance-based charge. This comes as the government faces a growing financial black hole from the switch to electric vehicles, which currently pay no fuel duty.
How the New System Would Work
Under the proposed scheme:
- All vehicles would be charged approximately 2p per mile driven
- Electric cars would be included in the pricing structure
- The system would use GPS technology to track mileage
- Traditional fuel duty and VED would be abolished
Addressing the Electric Vehicle Challenge
The move is seen as essential to maintaining Treasury revenues as more drivers transition to electric vehicles. With petrol and diesel cars gradually being phased out, the government's £35 billion annual income from fuel duty is under serious threat.
"The switch to electric vehicles means we need to fundamentally rethink how we pay for our roads," explained a transport policy expert. "The current system is becoming increasingly unsustainable."
Privacy and Practical Concerns
While the scheme aims to create a fairer system where drivers pay in proportion to their road usage, concerns have been raised about:
- Privacy implications of GPS tracking
- Impact on rural drivers who cover longer distances
- Administrative costs of implementing the new system
- Potential for higher costs for frequent drivers
What It Means for Your Wallet
For the average driver covering 7,000 miles annually, the new scheme would cost approximately £140 per year. However, this would be offset by the removal of both fuel duty and current road tax payments, potentially making it cost-neutral for many motorists.
The proposals are still in early discussion stages, but with the 2035 ban on new petrol and diesel cars approaching, the pressure to reform road taxation is mounting rapidly.
