London borough bids to launch pay-per-mile road tax pilot scheme

Pay-per-mile road charging due to be introduced in Britain in 18 months should be trialled in London, says Zack Polanski’s flagship Green council.

“Hackney will continue to engage in the debate over road user charging and will consider lobbying for the introduction of systems of smart road pricing such as pay-per-mile in London as a pilot scheme or on a national basis.”

Mayor of Hackney, Zoe Garbett

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The new eVED (Electric Vehicle Excise Duty) will apply to 2.3 million fully-electric vehicles in the UK and more than 2.7 million hybrids, including more than 190,000 and over 300,000 in London respectively.

The Conservatives immediately tore into Hackney’s proposal as part of a “bonkers war on motorists”.

Shadow Transport Secretary Richard Holden said: “The Green Party are desperate to work with Labour to turn London into their pay-per-mile guinea pig.

“These are the politics of the bonkers war on motorists, dreamed up by people who seem to think driving is a luxury.”

Shadow Transport Secretary Richard Holden

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Lord Sadiq Khan is understood to have no plans for City Hall to introduce pay-per-mile in London.

"As long as I am Mayor, we are not going to have pay-per-mile,” he has said.

It aims to compensate for electric vehicle drivers not paying fuel duty at the pump, while contributing to congestion and wear and tear on roads.

More and more people are switching to electric cars in the UK

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However, many electric vehicle drivers bought their car, paying higher upfront costs, on the understanding that it would cost significantly less to run.

There are already warnings that eVED could turn into a “poll tax on wheels,” referring to the revolt against the precursor to council tax, which partly led to the downfall of Margaret Thatcher as Prime Minister in 1990.

The eVED will be imposed on top of the current VED, with affected drivers charged 3p per mile for fully electric and hydrogen-powered vehicles, and 1.5p per mile for hybrids.

Rates will rise annually with inflation.

The new tax is set to rake in £1 billion for the Treasury in 2028/29, increasing to £2.3 billion within three years.

The new road tax for electric vehicles was announced in the Budget last year

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Motorists will have to declare estimated annual mileage and current mileage readings when they renew their VED road tax.

They will pay an upfront charge based on their estimate or spread payments across the year, with year-end mileage readings triggering a reconciliation of the figures.

The standard VED rate for petrol, diesel and hybrid cars registered on or after 1 April 2017 is £200.

Cars with a list price over £40,000 when first sold (or £50,000 if electric) may also be liable for the Expensive Car Supplement adding £440 to annual VED.