Drivers could face charges of up to £800 a year under a ‘stealth tax‘ that experts say may become unavoidable.
Labour’s push to achieve net-zero emissions by 2030 includes banning sales of new petrol and diesel cars.
However, this transition to electric vehicles is projected to leave a £30billion gap in Treasury fuel duty revenue. To address this, policymakers may turn to a controversial road pricing system.
Sir John Armitt, the UK’s infrastructure chief, has called road pricing ‘inevitable’. This system, endorsed by groups like the Campaign for Better Transport, could involve pay-per-mile charges for drivers.
Analysis from MailOnline shows that proposals like those from the Resolution Foundation, suggesting a 6p-per-mile fee, or the Tony Blair Institute (TBI), advocating for 1p-per-mile for cars and vans, could recoup billions in lost revenue.
The TBI also suggests that by 2050, charges could rise to 12p-per-mile, generating up to £30billion annually – equivalent to today’s fuel duty income.
Government figures reveal cars, taxis, and motorbikes drove 254.2 billion miles in 2023. A 1p-per-mile rate alone would have brought in £2.5billion last year.
While early schemes might cost drivers £70–£80 annually, future charges could escalate, potentially reaching £800 per year for the average motorist travelling 6,000 to 8,000 miles.
The system would also generate significant revenue from buses, vans, coaches, and lorries.
Sir Keir Starmer‘s government insists it has no immediate plans to introduce road pricing. But with fuel duty revenue expected to plummet as electric vehicle adoption grows, MailOnline suggests the controversial idea is likely to resurface.
Historically, road pricing proposals faced backlash under Tony Blair’s New Labour Government, with critics branding them a ‘stealth tax.’
Yet experts argue such measures could be essential to balance the budget as the UK transitions away from fossil fuels.
