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A new pay-per-mile car tax would see millions of drivers face a £250 annual bill. The move could add around £250 a year to the average electric driver’s costs, after the Labour Party government's Autumn Budget. Hybrid cars will also face a new, but lower, charge. The Treasury will reportedly make the case that the new tax is needed to cover falling fuel duty revenue as more and more vehicle owners go green. 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, according to the Telegraph. READ MORE Drivers warned car tax perk will be scrapped for 'first time' ever in UK Edmund King, AA president, said: "Drivers are worried that they will be a prime target for increased motoring taxation as the Chancellor seeks to increase her income. "Hiking UK fuel duty, with global turmoil threatening oil prices at every turn, could be disastrous for the UK economy and drivers dependent on road travel. "The danger of ramping up motoring costs further is that it hammers working people, adds costs to deliveries and businesses — and ultimately fuels inflation. "The Budget should not be an excuse for rampant cash-guzzling from motorists. "The private motorist is not a bottomless pit from which the authorities can help themselves to cash whenever they want to – whether that is tax, parking charges, congestion charges and fines." The RAC's fuel guru, Simon Williams, said: "Our latest research shows the cost of simply keeping vehicles on the road has become the most significant financial challenge facing drivers. "Driving is a must for so many people, yet the costs are running ever higher. We urge the Government not to hit drivers in the pocket at the Budget." In reply to the reports, a motorist sniped: "Eventually the rates will be means based, just like the gas and electric standing charges are today in CA. "Once you have your digital id, it can be used to set the price for everything you purchase. I know this sounds tinfoil hat, but it seems less so after CA got away with basing gas and electric bills on the means to pay." Meanwhile, it is also expected that Chancellor Rachel Reeves will announce that the 5p fuel duty cut will not be extended from April 2026.
