The October Budget could see a pay-per-mile tax system introduced on the UK roads (Image: Getty)
Drivers have been advised of a potential change to the , which could see the cost of motoring rise for many.
With Prime Minister warning that the upcoming will be ‘painful’ for many Brits, some have predicted that a new could be introduced.
Aidan Rushby, founder and CEO of the car finance lender , highlighted that the change could price many motorists off the road.
He explained: “The news about the introduction of a pay-per-mile road tax could exacerbate this trend driving more motorists off the road.
“It’s clear that Brits are already struggling, and the new initiative, planned to launch in October, will have serious implications, especially for younger drivers and those living in rural areas who rely on their cars for essential activities like work and education.”
:
A pay-per-mile tax system would charge drivers based on the distance they travel (Image: Getty)
Introduced in 2017, the current system for taxing a vehicle is initially based on the amount of carbon dioxide produced by the vehicle, which can range in price from £10 to £2,745.
From the second year onwards, all vehicle owners who are subject to road tax will pay a flat rate of £190.
However, with electric vehicles subject to road tax from April 2025, some have argued that a fairer system is needed in order to encourage more motorists to make the switch.
Don’t miss… [REPORT]
Since the Government has yet to confirm whether a pay-per-mile tax system will be introduced in the next budget, which is set to take place on October 30 2024, it is currently unknown how much drivers would be charged.
However, some experts have predicted that the tax could be as high as 15p per mile.
If that is the case, drivers who travel 7,000 miles a year, the average distance for a UK motorist, would face a fee of £1,050 per year – more than £800 higher than the current flat rate.