Labour has made a decision ahead of the upcoming Autumn Budget on road pricing amid fears drivers could be slapped with additional costs from a pay-per-mile regime of car tax.
Chancellor Rachel Reeves will unveil Labour’s first Budget later this month as drivers prepare for tough decisions to be made for all Britons.
Prime Minister Keir Starmer has already warned that the Budget will be difficult listening for Britons having already divided opinions with the decision to scrap the Winter Fuel Allowance.
Suggestions have been made that the Government could introduce a pay-per-mile system of car tax to claw back money to cover the £22billion black hole left by the previous Conservative administration.
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This would see motorists pay every time they drive, with experts warning that it would have an adverse impact on the working class and those who live in rural areas.
Suggestions were made that car tax changes could be made as the Chancellor prepares to make decisions on tax policy in the context of wider public finances.
A Government spokesperson told GB News: “We have no plans to introduce road pricing.
“We are committed to supporting our automotive sector as we transition to electric vehicles in order to meet our legally binding climate targets.”
Through the Zero Emission Vehicle mandate, manufacturers are expected to have a minimum percentage of their sales come from electric vehicles, starting at 22 per cent by the end of the year.
This will gradually increase over the coming years, reaching an 80 per cent target by the end of the decade and a 100 per cent target by 2035.
It has also committed to accelerating the rollout of public charge points, with hopes that the original 2030 target of 300,000 chargers will be met before that deadline.
At present, there are almost 70,000 chargers, according to Zapmap, although this is a year-on-year increase of 41 per cent.
While the Government will not move forward with any forms of road pricing, further car tax changes will take place in April next year.
Electric and hyrbid cars, as well as vans and motorcycles, will begin to pay Vehicle Excise Duty in the same way as petrol and diesel vehicles to ensure the system of motoring taxation is fair.
The Government has outlined that it remains committed to increasing the number of electric vehicles on UK roads in preparation for the 2035 ban on the sale of new petrol and diesel vehicles.
Labour did state in its manifesto that it was committed to reinstating the original 2030 deadline, although this has since been thrown into doubt after it was suggested hybrid sales could be allowed until 2035.
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So far this year, more than 213,000 electric vehicles have been sold, a significant 10.5 per cent increase compared to the previous year.
While the Government has ruled out plans to introduce road pricing, drivers fear that it could look to remove the fuel duty freeze which has been in place for almost three years.
A spokesperson for HM Treasury previously told GB News: “Following the spending audit, the Chancellor has been clear that difficult decisions lie ahead on spending, welfare and tax to fix the foundations of our economy and address the £22billion hole in the public finances left by the last government. Decisions on how to do that will be taken at the Budget in the round.”
