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Rachel Reeves is set to hammer motorists with hated pay-per-mile car tax changes in the Autumn Budget. According to The Telegraph, electric vehicle drivers will be hit with a new pay-per-mile tax. The pay-per-mile charges are set to be announced in the upcoming Budget on November 26. It is expected that the Labour Party government will levy a 3p per mile fee on top of other road taxes for electric vehicles. The scheme, set to kick in from 2028 after a consultation, will mean the average driver faces paying an extra £250 a year. Sir Mel Stride, the Conservative Party shadow chancellor, said: “If you own it, Labour will tax it. It would be wrong for Rachel Reeves to target commuters and car owners in this way just to help fill a black hole she has created in the public finances. READ MORE Drivers warned car tax perk will be scrapped for 'first time' ever in UK “With Labour’s cost of living crisis, now is not the time to hit hard-working families and businesses with another tax raid.” The new element is being described as “VED+” and being framed as a way to get drivers of green cars to pay more each year. The Treasury has refused to comment on any speculation around the forthcoming fiscal statement on November 26. From April, newly registered electric and zero-emission vehicles, with a list price exceeding £40,000, became subject to the standard road tax rate of £195, in addition to the ‘expensive car supplement’ of £425 a year. Last year, the Association of Fleet Professionals (AFP) warned that the introduction of a pay-as-you-drive charge for electric vehicles could cause “unforeseen effects”. Paul Hollick, chair of the Association of Fleet Professionals (AFP), said that, when drivers became aware of the new public charging rate, particularly those that have been complaining they have been underpaid for their business trips, fleets were left “on the back foot”, with HMRC initially not issuing any guidance on how the new rate should be applied. “What we’ve had is chaos, absolute chaos, and there’s not really been a huge amount of clarification,” he added. “All we want to try and do is be able to reimburse our drivers simply and equitably... but the new rate has meant that it is now very complicated. “We’ve got a lot of members at the moment that don’t really know what to do.”
