WATCH: Transport Secretary Heidi Alexander denies there will be pay-per-mile taxes introduced at the Autumn Budget
| PARLIAMENT UK
Labour has categorically dismissed speculation that Rachel Reeves will introduce pay-per-mile taxes at the Autumn Budget next week, despite widespread reports.
Transport Secretary Heidi Alexander declared during parliamentary questions today that no such proposals exist ahead of next week’s Budget, which was expected to include tougher driving costs for electric vehicle owners.
The denial came in response to concerns raised in the House of Commons about reports suggesting the introduction of road pricing measures that would see drivers charged based on distance travelled.
During exchanges in Parliament earlier today, Heidi Alexander directly addressed these concerns, stating unequivocally: “There are no proposals to introduce a national pay-per-mile scheme.”
The Transport Secretary said that the Government stands firmly with motorists, outlining its commitment to supporting drivers through infrastructure investments rather than implementing new charging mechanisms.
The admission seems to go against previous responses to pay-per-mile taxes, with a Government spokesperson stating this month: “We want a fairer system for all drivers while backing the transition to electric vehicles, which is why we have invested £4billion in support, including grants to cut upfront costs by up to £3,750 per eligible vehicle.
“Just as it is right to seek a tax system that fairly funds roads, infrastructure and public services, we will look at further support measures to make owning electric vehicles more convenient and more affordable.”
Charlie Dewhirst, Conservative MP for Bridlington and The Wolds, challenged the Government during Question Time, warning that any introduction of distance-based road charging would severely affect countryside communities where private vehicles remain essential for everyday journeys.
Chancellor Rachel Reeves was expected to announce pay-per-mile taxes at the Autumn Budget
| PA/PARLIAMENT UK
The MP argued that any road charging measures would constitute “yet another slap in the face from this Government for the countryside and for our motorists,” highlighting how residents in rural areas rely more heavily on cars due to limited public transport options.
Ms Alexander highlighted Labour’s focus on improving road infrastructure and reducing costs for drivers rather than implementing new charging systems.
The Secretary of State used the parliamentary session to outline existing commitments to motorists, emphasising practical support through infrastructure spending rather than additional taxation measures.
