UK Motorists Could Pay Tax Twice for European Holidays
British drivers taking their cars abroad could face being taxed twice under the Labour government's proposed pay-per-mile scheme, according to recent reports. The controversial policy announced by Chancellor Rachel Reeves would see motorists charged 3p for every mile they drive, regardless of whether those miles are accumulated on UK roads or overseas.
How the Double Taxation Would Work
The Telegraph has revealed that drivers holidaying in Europe would continue to pay the 3p tariff even when using foreign roads. This means a typical 1,530-mile round trip from Calais to Nice on France's south coast would cost an extra £45.90 in UK road tax alone. This additional charge would come on top of existing tolls that drivers already pay to use European Union highways, effectively creating a double taxation scenario.
Edmund King, president of the AA, expressed strong concerns about the policy's implications. "You would effectively be paying tax twice – to both the French and UK Government," he stated. King highlighted the practical difficulties of implementing any exemption system, noting that checking and certifying mileage at border points like Dover would create bureaucratic nightmares and exacerbate existing border delays.
Industry Experts Condemn 'Unfair' System
The motoring industry has reacted with significant criticism to the proposal. Paul Holland from payments firm Corpay, which works with vehicle fleets, warned that "the UK's close proximity to Europe and Ireland will materially penalise people who take their cars abroad." He added that charging for foreign travel would "clearly miss the point" of a road tax designed to maintain UK infrastructure.
Paul Barker of Auto Express magazine described the potential foreign travel charges as "clearly unfair and a huge flaw in the system." He emphasised that "it wouldn't be reasonable to charge drivers for mileage clocked up abroad when they're not using UK roads or infrastructure."
The criticism follows earlier condemnation from Brian Macdowall of the Association of British Drivers, who labelled the entire pay-per-mile plan as "utterly illogical". The Treasury has responded to concerns by stating they are committed to "a tax system that fairly funds roads, infrastructure and public services" while also looking at support measures to make electric vehicle ownership more convenient and affordable.
