New Pay-Per-Mile Tax Likely to Push One in Three Drivers to Sell Their Vehicles

Portrait of Lydia Amazouz, a young woman with dark hair tied back, wearing glasses and a striped blue and white shirt, against a solid coral background.
By Lydia Amazouz Published on 5 September 2024 16:33
New Pay-Per-Mile Tax Likely To Push One In Three Drivers To Sell Their Vehicles
New Pay-Per-Mile Tax Likely to Push One in Three Drivers to Sell Their Vehicles - © en.econostrum.info

Many petrol and diesel drivers could be forced to ditch their vehicles and switch to other modes of transport as new pay-per-mile tax changes are set to be introduced.

New Pay-Per-Mile Tax Could Drive Up Costs and Push Motorists Off the Road, Experts Warn

Experts have issued a warning over the new tax measures, which could be introduced soon by the new Labour Party government as part of the October Budget, will further increase costs for drivers on the road.

The new pay-per-mile tax scheme, which will likely impact drivers, road users, and motorists in addition to raising car insurance rates, which may compel drivers to stop using their cars. Kathryn O'Brien, customer experience and transformation director of TransPennine Express, expressed her concern, saying: “We could be on the precipice of a huge transformation in the way we travel according to our latest research.

“Car running costs are increasing year on year, faster than the rate of inflation and they’re that high that it’s forcing them off the road.” Mr O'Brien added: “Our affordable prices mean that if Britons want to make the switch and start travelling by train, they can sit back, relax and make the most of our modern, clean and comfortable trains without watching the pennies as they get behind the wheel.”

Rising Costs of Petrol and Insurance Prompt Motorists to Quit Driving

According to a recent survey, nearly half (49%) of drivers are concerned about rising petrol prices, auto insurance and automobile taxes. More over one-third (38%) of drivers believe that if expenses continue to grow, they will be compelled to cease driving.

The report also stated that two million automobile owners have already given up driving this year due to rising motoring costs. Sadiq Khan, the London mayor, was compelled to firmly rule out any moves towards road pricing in his second term, reversing past declarations in support of the proposal, after the “war on drivers” became a major campaign issue for Conservatives.

A spokesperson for the Treasury highlighted their commitment to supporting the automotive sector amid the transition to electric vehicles so that they could meet their legally binding climate targets.

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