UK drivers are bracing for a significant shake-up in how they are taxed for using the roads, as the government plans a new charge for electric vehicles and considers stricter MOT tests to enforce it.
The New Pay-Per-Mile Tax Proposal
Chancellor Rachel Reeves is set to use her autumn statement on November 26 to unveil a new road tax system. The key announcement will be that drivers of electric cars will be charged approximately 3p per mile from 2028.
According to government sources, the system will not rely on controversial GPS tracking or 'black box' technology installed in vehicles. Instead, motorists may be required to declare their estimated annual mileage and pay a fee calculated from that figure.
How Stricter MOTs Could Enforce The Tax
A potential method for collecting this new tax is through a reformed MOT test. The government is considering a plan where MOT testers would officially record a vehicle's mileage during the annual check.
This recorded mileage could then be used to calculate the driver's precise tax bill, ensuring they pay for the exact distance they have driven. This proposal aims to address concerns about drivers underreporting their mileage in a self-declaration system.
Expert Warnings and Potential Consequences
Dr Craig Morton, a transport planning expert at Loughborough University, has raised several concerns about the proposed system. He warned that a self-reporting model could lead to widespread underreporting of mileage by drivers seeking to reduce their tax bill.
He also highlighted the financial impact on EV owners, stating, "Some EV drivers are already paying around 3p per mile to drive. Adding another 3p in tax would double their costs." Dr Morton emphasised that this extra charge would hit lower-income drivers hardest and could slow down the adoption of electric vehicles across the country.
While the Treasury has not yet formally confirmed the pay-per-mile proposals, a spokesman stated the government wants "a fairer system for all drivers whilst backing the transition to electric vehicles." They added that it is right to seek a tax system that fairly funds roads, infrastructure and public services.
The news comes as petrol and diesel cars continue to dominate the used car market, making up 89.2% of transactions in the third quarter of the year.
