Labour could be set to introduce a regressive pay-per-mile road tax in the Autumn Budget after a top advisor to the previous government revealed that the Treasury has been pushing for such a scheme to be implemented for some time.
Adam Smith was the chief of staff under Conservative ex-Chancellor Jeremy Hunt and told the Telegraph newspaper that staff from HM Treasury frequently requested that the government “start[ed] preparatory work on a road pricing scheme”.
Pay-per-mile road taxation, also known as road pricing, would see drivers having to pay more Vehicle Excise Duty depending on how many miles they drive per year, in conjunction with how polluting (or not) their vehicle is. Simply put, this means that those who drive less, pay less, and those that drive more and thus use the roads more, pay more.
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