Chancellor Urged to Impose Pay-Per-Mile Tax on ZEV Drivers

Published on September 3, 2024

Campaigners have urged Chancellor Rachel Reeves to impose a pay-per-mile scheme on British drivers to address the anticipated decline in revenue from fuel duty. In the UK’s drive towards net zero, more drivers are expected to switch from fuel and petrol cars to zero-emission vehicles (ZEVs). The transition will leave the government with a “looming back hole” as the funds from fuel duty will decline by an estimated £5 billion a year by 2033. The warning comes from the public transport charity Campaign for Better Transport (CBT) that has predicted a “massive revenue gap,” if the Treasury fails to carry out a taxation reform....