Brits over the age of 70 could be hit by a new levy under Labour plans.
Older drivers could be charged around £50 more per year when the change comes into effect (Image: Getty)
Older drivers could be forced to pay an extra £50 in tax annually under new rules. Electric car drivers will be required to pay a 3p per mile charge, and hybrid motorists 1.5p per mile, from April 2028. Older UK drivers, particularly those over the age of 70, cover an average of 1,665 miles per year, translating to a total charge of £49.95 over a 12-month period.
The Treasury said mileage will be checked each year around the time MOT is due, while new cars will be checked around the first and second anniversary of their registration. The payment will be integrated into the existing Vehicle Excise Duty System, operated by the DVLA, with readings based on in-vehicle odometers.
The Government acknowledged that the system could open the door to tampering, or “clocking”. Officials recognise that the tax “may increase the likelihood of motorists choosing to clock their vehicles” and are looking into mitigation measures, according to the BBC.
Electric car drivers will be charged 3p per mile from 2028 (Image: Getty)
The Office for Budget Responsibility (OBR) estimated that the change could generate £1.1billion over its first financial year, growing to £1.9billion by 2030/31. The OBR report added that the yield would depend on the number of electric cars purchased over the next five years, however, making exact projections “uncertain”.
The charge will apply to all electric vehicles registered in the UK, regardless of where they are driven in the world, while vehicles registered abroad but driven in the UK will be exempt. It comes ahead of a planned ban on the sale of new petrol and diesel cars from 2030, with some new hybrid cars allowed to be sold until 2035, including several models that cannot be plugged in.
The OBR warned that that the planned tax may discourage Brits from buying electric vehicles, however. It said the new levy was “likely to reduce demand for electric cars as it increases their lifetime cost”.
The independent economic forecaster recommended manufacturers respond by “lowering prices or reducing sales of non-electric vehicles” to meet the mandate. Sales of new electric cars in the UK increased for the 10th consecutive month in September, with a record number of models on the road, according to the Society of Motor Manufacturers and Traders (SMMT).
Mike Hawes, chief executive of the SMTT, said high fuel prices were “undoubtedly giving more cusomers reason to consider going electric”, but added that uptake “remains behind mandated targets”.
“The industry’s commitment is clear, with billions of pounds of investment in new models, new technology and incentives,” he said. “[But] whilst flexibilities help, the UK still has the world’s toughest targets and highest energy costs.”