EXCLUSIVE: Pushback against Chancellor’s controversial road pricing plan, which is set to clobber motorists in 2028
Rachel Reeves has been slammed over plans for a 3p per mile car tax fee (Image: Getty)
Rachel Reeves’s new pay-per-mile car tax charge has been blasted by the boss of one of the UK’s biggest car dealership brands. The Chancellor confirmed the introduction of a new 3p per mile road tax policy for electric vehicles in her autumn Budget, with Labour keen to plug the gap left by lost petrol and diesel fuel duty as more motorists switch to electric vehicles (EVs).
The new rule would be in place from 2028, with plug-in hybrids charged 1.5p per mile. The news sparked controversy, with the Society of Motor Manufacturers and Traders (SMMT), which oversees the UK’s car industry, among the leading names to call out the move.
A new 3p per mile car tax fee will be introduced from 2028 (Image: Getty)
Robert Forrester, chief executive of Vertu Motors, who runs dealerships for some of the UK’s biggest household names such as Vauxhall, Citroen and Peugeot, has now revealed his fury at the idea.
Although Mr Forrester sympathised with the Government having to replace fuel duty revenues, he questioned Ms Reeves’s method.
He predicted that a per-mile road tax fee could open a “can of worms” and suggested Labour should have considered a flat fee instead.
Speaking exclusively to Express.co.uk, Mr Forrester said: “From my own perspective, it was an ill-thought-out policy on a number of grounds.
“The SMMT’s Mike Hawes said it was ‘the wrong policy at the wrong time’ and I think he’s right. One is an easy one – if they had said we need to replace fuel duty, there’s going to be flat tax of £250 each year on road tax for electric vehicles, I think that’s nice and simple.
“Whereas they’ve just opened a can of worms. How’s it going to be measured? How’s it going to be charged? Let’s use MOT stations. It’s just an awfully ill-thought-out policy, let’s be honest.”
MOT test centres could be drafted in to check pay-per-mile declarations (Image: Getty)
The Department for Transport (DfT) has previously suggested that Electric Vehicle Excise Duty (VED) fees will be monitored at MOT test centres.
It is understood that drivers will estimate their mileage every year, which will then be checked against car odometers during the annual motoring exam.
Road users who have underestimated their mileage can then make a single transaction to balance their charges or adjust payments to offset the difference.
However, AA president Edmund King has previously suggested that VED mileage checks would not be an issue for garages and were unlikely to take up more time.
He previously told Express.co.uk: “This should be a simple process as mileage is already checked at MOT, which is administered by DVSA, and therefore would just need DVSA to link with the DVLA database. Garages wouldn’t need to do anything differently.”
