Tony Blair Institute Proposes Pay-Per-Mile Road Tax to Offset Fuel Duty Losses

The think tank suggests a per-mile levy to maintain tax revenue as electric vehicle adoption rises.

The Tony Blair Institute recommends a 1p per mile charge for cars and vans, with higher rates for heavy goods vehicles.
The proposal aims to address the anticipated decline in fuel duty revenue due to the shift towards electric vehicles.
Implementing the tax could generate an additional £3 billion annually by the end of the current parliament.
The proposed system would initially rely on odometer readings during annual MOT checks, with potential future use of tracking technology.
The Institute argues that acting now could prevent more severe financial shortfalls and road congestion issues.