Drivers to wake up to £1,050 pay-per-mile charges as car tax relief ends

As the number of on the UK roads increases, drivers have been warned that a new way of could be rolled out across the country.

Whilst the Government has confirmed that they will not be rolling out a of in the upcoming , some have argued that the change will be inevitable in the near future.

Baroness Judith Blake of Leeds voiced concerns that the budget may see motorists pay higher amounts for road tax as fewer vehicles are subject to relief.

She explained: "Yes, the noble Lord is absolutely right, the end date for the vehicle tax relief is next year.

"However, as the Lord and everyone else in this chamber will be aware we are approaching the Budget, and I cannot comment on any matter that might be raised in it.

Whilst classic models and cars used by disabled drivers will still be exempt from the charge, owners of electric vehicles will need to pay road tax for the first time in April 2025.

Currently, it is unknown exactly how much drivers will need to pay for the charge. However, if tax rates remain the same, owners would likely need to pay the same flat rate of £190 per year as drivers of petrol and diesel car drivers.

In addition, electric cars with a retail price of over £40,000 will also be subject to a £410 yearly charge for the first five years it is on the road, meaning owners would have to pay a total of £600 per year.

Despite the Government ruling out introducing a pay-per-mile tax system, a number of motoring experts have predicted that it could be introduced later down the line. This is due to the rising uptake in electric cars meaning the amount of revenue made from fuel duty is falling.

Whilst no details have been confirmed about the system, many suggest that drivers would be charged a certain amount for each mile they travel in their car, with prices potentially changing based on the roads they use and the time they travel.

However, if drivers are charged a flat rate of 15p per mile, motorists who travel the average distance of 7,000 miles per year could face a £1,050 tax bill.

The predictions come as the Government confirm that they will bring forward the ban on the sale of new petrol and diesel cars to 2030 once again.

Whilst drivers will still be able to drive, sell and buy used cars that utilise fossil fuels, dealerships will only be able to sell new plug-in hybrid or electric models.

Driving experts have been left divided over the announcement, with supporters stating that it could help to bring more jobs to the automotive industry and others warning it will negatively impact the car companies.