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UK government confirms it has no plans to introduce pay-per-mile

By Jodie Chay Oneill | September 30, 2024

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Had the scheme been introduced, it could have replaced the current road tax and fuel duty with a pay-as-you-drive system

UK government confirms it has no plans to introduce pay-per-mile

The UK government has confirmed it has no plans to implement pay-per-mile road pricing, despite ongoing speculation and advocacy from certain groups.

In an official statement, a government spokesperson clarified: "We have no plans to introduce road pricing. We remain committed to supporting the automotive sector as it transitions to electric vehicles, aligning with our legally binding climate goals."

Had the scheme been introduced, it could have replaced the current road tax and fuel duty with a pay-as-you-drive system, potentially imposing significant costs on operators of large commercial vehicles. The specifics of the proposal were never clear, but it raised concerns about the financial impact on heavy road users, particularly in the freight industry.

Proponents of the model argue it would be a fairer way to raise revenue, with those using the roads more frequently bearing a larger share of the costs. However, critics have pointed to unanswered questions regarding how mileage would be tracked, how international travel would be factored in, and whether such a system could lead to increased surveillance, potentially infringing on civil liberties.

For now, the Department for Transport has reiterated its commitment to introducing vehicle excise duty (VED) for electric vehicles in 2025 and extending the petrol and diesel phase-out to 2030.

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