Treasury speaks out over fears some drivers face | Tech News

Motorists might quickly be hit with new 9p pay-per-mile car tax expenses because the Treasury issued a main assertion forward of Rachel Reeves‘ November Budget. In a assertion to the Daily Express, Treasury bosses did not categorically rule out the introduction of pay-per-mile charges later this 12 months.

This is in stark distinction to final Autumn, the place DfT bosses informed the Daily Express there have been “no plans” for a street pricing scheme forward of the Budget. Earlier this month, the Resolution Foundation known as for the introduction of a new weight-based tax system tied intently with distance. The Resolution Foundation’s ‘Call of Duties’ plan urged medium-sized electric autos may very well be charged up to 6p per mile to make use of the roads.

However, weight-based charges would imply lighter EVs below 1,00kg can be charged 3p per mile with heavier fashions weighing over 2,800kg paying 9p per mile. 

When questioned over whether or not the Government was contemplating a 9p per mile car tax charge, the Treasury merely stated: “Our balanced approach helps to protect public finances during the transition to electric vehicles.

“We have introduced Vehicle Excise Duty (VED) on Electric Vehicles while providing £1.4bn to boost sales and £650m in grants to cut upfront costs by up to £3,750 per vehicle.”

The Treasury informed the Daily Express that the Chancellor retains all taxes below review and makes tax selections at fiscal occasions. The Treasury additionally added they don’t particularly touch upon hypothesis about tax modifications.

Last September, the Department of Transport made it clear that a pay-per-mile charge was not on the agenda. They stated: “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.”

Weeks later, Rachel Reeves did not announce any pay-per-mile charges however did verify an overhaul on VED charges for petrol, diesel and electric autos. The Treasury did verify that the Government is investing over £4.5bn to help each industry and client change to electric autos.

This consists of help for charging infrastructure, provide chains and finance by way of the Electric Car Grant. One in 4 new vehicles bought in June was electric whereas the the UK led Europe in EV gross sales within the first quarter of 2025.