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Chancellor Faces Calls for Pay-Per-Mile Road Tax

Campaign for Better Transport urges Rachel Reeves to address looming revenue shortfall from electric vehicle adoption.

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The Campaign for Better Transport has written to Rachel Reeves, the Chancellor, ahead of the Budget

Overview

  • Campaigners warn of a significant tax revenue gap as more drivers switch to electric vehicles.
  • Proposed tax would charge all vehicles per mile, with higher rates for more polluting cars.
  • The RAC and other transport bodies support the measure to ensure fair contributions from all drivers.
  • Previous governments have avoided road pricing due to its political sensitivity.
  • Rachel Reeves is set to deliver her first Budget on October 30.