Pay-Per-Mile Car Tax Proposals Reveal Stark Regional Cost Disparities
New pay-per-mile road tax plans unveiled by Chancellor Rachel Reeves could see rural drivers paying nearly five times more than their urban counterparts, according to analysis by The Electric Car Scheme. The proposed 3p-per-mile charge, announced in the Autumn Budget, has raised concerns about regional fairness and potential financial penalties for communities with limited transport alternatives.
Regional Breakdown Shows Dramatic Cost Differences
Research conducted by The Electric Car Scheme reveals significant variations in projected annual charges across different regions of the country. Drivers in the South West would face the highest average annual cost at £110.25, closely followed by the East Midlands at £105.09. Motorists in the North East and North West would encounter mid-range expenses of £82.20 and £83.79 respectively.
Most strikingly, London drivers would pay just £33.09 annually on average, despite the capital having the highest concentration of electric vehicles and the most developed charging infrastructure nationwide. This represents less than one-third of what rural drivers would be required to pay under the new system.
Rural Communities Face Disproportionate Burden
The analysis indicates that residents of smaller rural towns near cities would bear the heaviest financial load, with an average annual charge of £156.51. This contrasts sharply with the £76.02 average for drivers living in cities and larger towns. The Electric Car Scheme warns that this could effectively quadruple car taxes for some rural motorists.
Thom Groot, chief executive of The Electric Car Scheme, expressed concern about the proposals. "The data clearly shows that rural communities and regions outside London will bear the brunt of these costs due to longer necessary journeys and limited transport alternatives," he stated.
Industry Concerns and Government Response
Groot highlighted several challenges facing the proposed scheme, including privacy concerns, regional fairness issues, and potential public opposition. "With almost two million electric vehicles on the road now, and more than triple this number expected by 2028, this scheme still has many barriers to overcome," he noted.
The industry leader emphasized the importance of financial incentives rather than penalties for encouraging electric vehicle adoption. "What we have found is that to get more people into EVs, we need financial incentives, such as the very successful salary sacrifice scheme, and not penalties," Groot explained.
A Government spokesperson defended the proposals, arguing that the current system creates unfairness between electric and petrol vehicle drivers. "Right now, electric vehicle drivers pay no fuel duty. That's not fair. Under the new system, electric vehicles will pay half the duty of petrol cars - still the cheaper, greener choice," the spokesperson stated.
The spokesperson added that petrol drivers currently pay approximately £480 annually in fuel duty on average, while electric vehicle drivers contribute nothing. "Similar to fuel duty, those who drive more will pay more," they concluded, framing the pay-per-mile system as a more equitable approach to road taxation.
