Door left open to pay-per-mile roads system in new twist | UK | News
The Government has seemingly left the door open to a pay-per-mile road charging scheme in the Budget, after backtracking on remarks made by a minister in the Commons. Transport Secretary Heidi Alexander told MPs “there are no proposals to introduce a national pay-per-mile scheme”, as she fielded questions about how next week’s Budget could affect motorists.
However, a source close to the Transport Secretary has since indicated she misspoke and meant to rule out a national road pricing system, which could encompass tolls and congestion charges.
“This Government is firmly on the side of drivers,” Ms Alexander said on Thursday morning, after Conservative MP for Bridlington and The Wolds Charlie Dewhirst cautioned that charging motorists based on mileage would “disproportionately impact” rural drivers.
Ms Alexander added that the Government was already “pumping ยฃ24 billion of capital into motorways and local roads”, with repairs to “run-down bridges, decaying flyovers and worn-out tunnels”. Duty on vehicle fuels, such as petrol and diesel, generated just under ยฃ25 billion in the 2024/25 financial year, but a transition to electric vehicles (EVs) threatens to erode the Treasury’s revenue.
Earlier this month, The Telegraph reported that Chancellor Rachel Reeves was set to announce a 3p-per-mile charge for electric vehicle (EV) drivers, in addition to other road taxes. This would come into effect from 2028 following a consultation period.
It is understood that drivers would be charged based on their estimated travel, without any widespread electronic monitoring of their movements.
A Government spokesperson at the time advocated for “a fairer system for all drivers whilst backing the transition to electric vehicles”. They also mentioned that buyers would be supported by a grant to reduce upfront costs by up to ยฃ3,750 per eligible vehicle.
The spokesperson further stated: “Just as it is right to seek a tax system that fairly funds roads, infrastructure and public services, we will look at further support measures to make owning electric vehicles more convenient and more affordable.”
