Car tax changes could ‘penalise people who work’ and have ‘no alternative’ than to drive

Martin Lewis gives money-saving advice on VED car tax

New car tax proposals could see the current Vehicle Excise Duty costs and fuel duty charges replaced with a pay per mile system. As the policy is yet to see the green light, an official pricing structure has yet to be released.

However, motoring experts have predicted this could be a flat 75p per mile charge or a varying levy of between 2p and £1.50 per mile.

Mr Freeman has attacked the scheme as “unfair” with many penalised for using the road when there may be “no alternative”.

Speaking exclusively to Express.co.uk, Mr Freeman said: “What you would be doing is penalising people who work and who need transport.

“For example the plumber who lives in North Wales and works in Manchester and travels 163 miles every day just to get to and from work and then travels massively about.

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“You’re talking of someone who travels 50,000 miles, they are in essence living in their cars.

“There are many many people who do in excess of 30,000 miles per year.

“They will be penalised very heavily for working and that’s unfair. It’s basically penalising people unfairly for needing to be on the road and that cannot be right when there is no alternative.”

The new car tax changes are being considered to fill a £40billion hole in public spending caused by the switch to electric cars.

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The Government will start to lose revenues on traditional VED and fuel duty charges as more drivers switch to zero-emission vehicles.

This will only worsen over the next decade as more people switch vehicles ahead of the 2030 petrol and diesel new car sales ban.

The Department for Transport says it was vital to ensure revenue from car taxes keep with change on the roads.

Any changes to the car tax system are being considered by the Chancellor with any further steps to be announced in due course.

However, Mr Freeman warns the Government could become inventive with a pay per mile system in order to punish drivers travelling at peak times.

Although in no way confirmed, he warned charges could be higher for those travelling in rush hour which would “cause problems” for many road users.

Speaking to Express.co.uk, he said: “Another problem is if you said travelling at rush hour [will be] £1.50 per hour but if you travel at 3am it’s going to be 2p.

“We would encourage people to use their cars throughout a 24 hour period.

“There would never be any downtime, there would never be any quiet time because we would all be on our roads.

“Our domestic clock would be changed because people would want to be saving money.

“They would want to use their cars at the cheapest times.

“The cheap time would attract many motorists who don’t necessarily need to be on the road during rush hour and that in itself would cause a problem. I think it’s an unfair system.”

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