莲花直播

Half of UK motorists back 鈥榩ay-per-mile鈥 as a fairer road tax system 鈥 but many fear higher costs

November 05, 2025 by

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Nearly half of UK drivers (49%) believe that a pay-per-mile road tax system would be a fairer way to charge motorists than the current Vehicle Excise Duty (VED)

Nearly half of UK drivers (49%) believe that a pay-per-mile road tax system would be a fairer way to charge motorists than the current Vehicle Excise Duty (VED), according to new research from 莲花直播, the online car-changing platform.

The findings suggest growing openness to reforming how Britain taxes driving, as policymakers consider how to replace falling fuel duty revenues in the shift towards electric vehicles (EVs).

Ahead of the Chancellor鈥檚 Autumn Statement later this month, think-tanks including The Resolution Foundation, have been calling for an overhaul of motoring taxes to plug the gap, proposing a per-mile charge of between 3p and 9p depending on vehicle weight, alongside an annual fee. Such a system could raise up to 拢20 billion a year for the Treasury, according to its analysis.

If pay-per-mile were introduced to replace VED, many drivers say they would change their habits. Almost a third (31%) would drive less to control their spending, 18% would consider switching to a more efficient or electric car, and 14% say the change could make driving unaffordable for them entirely.
Views also differ on how such a scheme should be structured. Just over half (51%) think all motorists should pay the same rate per mile, regardless of fuel type, while 28% believe electric-vehicle drivers should pay less to reflect their lower emissions.

The debate is gathering pace as the UK transitions away from petrol and diesel. The Office for Budget Responsibility forecasts that fuel duty revenues will fall by a fifth by the end of the decade, from 拢28 billion to 拢22.6 billion, underlining the growing pressure on the Government to find a sustainable replacement.

Iain Reid, Head of Editorial at 莲花直播 said: 鈥淭hese findings show motorists recognise the need for a fairer, more sustainable system as fuel duty revenues decline, but they also highlight deep concern about affordability. Any move towards pay-per-mile taxation made by the Chancellor in next month鈥檚 Budget will need to balance fairness, simplicity and cost to avoid penalising those who rely most on their cars.

鈥淎s it always is, the devil will be in the details; how will it actually be implemented? Before EVs, we effectively had a pay-per-mile system through fuel duty: the more you drove, the more tax you paid. Now, it鈥檚 trickier. Would it rely on ANPR (Automatic Number Plate Recognition) cameras, or some other mechanism? And who would pay for that infrastructure?

鈥淭o ensure confidence and protect privacy, any new system should give drivers the option to submit mileage in a way that suits them, from manual odometer readings to automated GPS-based reporting. Crucially, this wouldn鈥檛 require location tracking, only the raw miles would matter.鈥

The discussion around road-tax reform is expected to intensify in the months ahead, as ministers weigh the challenge of funding road infrastructure while continuing to support the transition to low-carbon transport.