What's happened
The Campaign for Better Transport urges Chancellor Rachel Reeves to implement a pay-per-mile scheme for electric vehicles to address a projected £5 billion tax revenue shortfall. This proposal aims to ensure fair taxation for zero-emission vehicles as traditional fuel duties decline, garnering public support for the initiative.
Why it matters
What the papers say
The Guardian reports that the Campaign for Better Transport has called for a pay-per-mile scheme, emphasizing that it would be a fair way for zero-emission vehicle drivers to contribute to vehicle taxation. Silviya Barrett, director of policy and campaigns at CBT, stated, "The new Chancellor faces a looming black hole... she should start now, as this issue will only get more pressing". Meanwhile, Sky News highlights the political sensitivity surrounding road pricing, noting that previous governments have shied away from such measures due to public backlash. The Independent reinforces the urgency of the situation, stating that the current taxation model is unsustainable as more drivers transition to electric vehicles.
How we got here
As the UK transitions to electric vehicles (EVs), traditional fuel duties are expected to decline significantly. The Campaign for Better Transport has highlighted a looming £5 billion tax revenue shortfall, prompting calls for a new taxation model that includes zero-emission vehicles.
Common question
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What is the proposed pay-per-mile scheme for electric vehicles in the UK?
As the UK shifts towards electric vehicles, the government faces a significant tax revenue shortfall due to declining fuel duties. The Campaign for Better Transport has proposed a pay-per-mile scheme to address this issue. This page explores the implications of this proposal, its potential benefits and drawbacks, and how it could affect electric vehicle owners.
More on these topics
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The United Kingdom of Great Britain and Northern Ireland, commonly known as the United Kingdom or Britain, is a sovereign country located off the northwestern coast of the European mainland.
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Rachel Jane Reeves is a British Labour Party politician serving as Shadow Chancellor of the Duchy of Lancaster and Shadow Minister for the Cabinet Office since 2020. She has been the Member of Parliament for Leeds West since 2010.