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The Conservatives have accused Labor of treating motorists “like cash machines” amid reports drivers Of electric vehicle May face new pay-per-mile tax Rachel Reeves‘S Budget,
The Chancellor is considering a scheme which would include electric drivers cars 3p per mile charged as per Wire,
This scheme is scheduled to be implemented from 2028, by which time Six crore people will drive electric cars,
The 3p charge on a journey from London to Edinburgh will equate to around £12, according to the newspaper, which also notes that drivers will have to estimate their own usage rather than being tracked electronically.
Shadow transport secretary Richard Holden said: “Britain cannot afford a spineless government which, instead of standing up to its own backbenchers to stop a rapid rise in welfare payments, treats motorists as a cash machine to fill the hole being created by Rachel Reeves and Sir Keir Starmer.”
“For Rachel Reeves Families aren’t ATMs, yet under Labour, everyone who is vehicle dependent is being lined up for another shock.”
It comes as the Treasury faces a decline in fuel duty revenue as more people switch from petrol and diesel to electric cars.
A government spokesperson said ministers wanted to make the system “fair” for all drivers.
He said in a statement: “The fuel charge covers petrol and diesel, but there is no equivalent for electric vehicles. We want a fairer system for all drivers while supporting the shift to electric vehicles, which is why we have invested £4 billion in support, including grants to cut upfront costs by up to £3,750 per eligible vehicle.
“Just as it is right to seek a tax system that properly funds roads, infrastructure and public services, we will consider further support measures to make electric vehicle ownership more convenient and more affordable.”
Electric cars have been banned from April this year vehicle excise dutyFollowing changes brought in by the Conservative government in 2022.
In 2023, the think tank Resolution Foundation – whose director at the time, Torsten Bell, is now Treasury Minister – recommended that a national pay-per-mile system be introduced whereby “EV drivers would pay 6p per mile (plus VAT) from 2027”.
The AA has warned that the policy could be seen as a “poll tax on wheels” and urged Ms Reeves to “tread carefully”.
The organisation’s chairman, Edmund King, said: “While we accept that the Treasury is losing fuel duty revenue as drivers go electric, Government One has to proceed with caution until their activities slow down. Transition to EVs,
“The ZEV mandate 28 percent of new car sales this year will not meet zero-emissions, with sales running at only 22 percent. “We need to look at the details of this proposal to ascertain whether these new taxes will be equitable, or will be a poll tax on wheels.”
The Chancellor has already told the country there could be sweeping tax rises this month, saying during an unprecedented pre-Budget address this week that “we all have to contribute”.
She is facing the possibility Breaking Labour’s manifesto pledge not to increase income tax, National Insurance or VATAnd hinted she may be prepared to break that promise as she warned of “difficult choices” ahead.
on weekends, Independent Revealed Ms Reeves will face a Cabinet response if she breaks her pledge to voters.
Many senior ministers are concerned that breaking Labor’s manifesto promise not to increase income tax, VAT or Employee National Insurance contributions could scuttle any hope of political reform as the party continues to lag in the polls.
A senior minister said, “Those who say we should not stick to that pledge do not understand how important it was in winning the elections.”