Car tax changes: New pay-per-mile scheme needed ahead of 2030 petrol and diesel car ban

Martin Lewis gives money-saving advice on VED car tax

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James Taylor, general manager of Zipcar UK, has warned the need for a new road pricing scheme is “clear”. Mr Taylor warned a new pay-per-mile tax system could help “drive behaviour change” and help support “sustainable transport” and electric cars. 

Speaking to, he said: “The 2030 ban on the sale of new petrol and diesel vehicles will put a large amount of fuel duty revenue at risk.

“With the continued growth in the number of electric vehicles on our roads, the need for a new national road pricing scheme is clear.

“What form that takes remains to be seen.

“As well as raising revenue for HM Treasury, a new road pricing system should be designed to drive behaviour change and support more sustainable transport behaviour.

“Such a system could, for example, encourage zero-emission shared vehicles (such as car clubs) rather than privately owned ones.”

Chancellor Rishi Sunak has reportedly been considering a switch to pay- per-mile road pricing.

However, a source told the Daily Mail road pricing plans had been dropped just days before the Chancellor’s Autumn Budget.

It comes as ministers fear charging drivers per mile would encourage people against buying a new electric car.

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Last December, the Department for Transport warned revenue from motoring taxes would need to “keep pace” with changes on the road.

The Government has not stated it will introduce road pricing, but warned it was still committed to achieving net-zero emissions by 2050.

They added any changes to the tax system would be considered by the Chancellor and announced in “due course”.

Despite the assurances, some experts are not fooled and believe plans may be closer in the pipeline.

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