Labour is considering leveraging the built-in connectivity systems of newer vehicles to digitally track drivers' mileage for a proposed pay-per-mile road tax, according to plans surfaced in the recent budget. The initiative aims to streamline the road tax process for electric and hybrid vehicles and potentially prevent mileage fraud.
Under the proposal, transport officials could interact digitally with vehicles to calculate road tax based on miles driven. While the Treasury insists the system would be opt-in, critics fear it represents a significant privacy intrusion and could be the first step toward mandatory mileage monitoring for all drivers.
Tory transport spokesman Richard Holden criticized the plan, stating, "They have snuck it out in the Budget, and they want your car gossiping to the taxman every mile you drive." He accused Labour of a "war on drivers" and urged them to rule out pay-per-mile pricing definitively.
Howard Cox, founder of the FairFuelUK group, echoed these concerns, calling the plan "Big Brother Britain." He questioned the longevity of the opt-in nature, suggesting it could evolve into demands for more personal data, such as driving destinations and private activities.
Josie Appleton, director of the Campaign for Freedom in Everyday Life, warned that the mileage tax could become an "excuse to monitor and invade the liberties of e-vehicle drivers," potentially leading to surveillance beyond mileage checks.
The Treasury stated that no trackers would be required and drivers would not need to report their location or when miles are driven. The pay-per-mile scheme, officially termed "eVED Connect," is slated for enforcement from April 2028. It was initially announced by former Chancellor Rachel Reeves, proposing a rate of 1.5p per mile for hybrids and 3p for fully electric cars, in addition to existing Vehicle Excise Duty.
This new levy is intended to compensate for declining fuel duty revenues as more motorists switch to electric vehicles. The current system relies on drivers submitting annual mileage readings, cross-referenced with MOT tests, to prevent fraud. However, the new plan suggests utilizing vehicles' integrated internet and GPS systems to automatically provide mileage data for tax calculation. Many modern electric and hybrid cars already possess such capabilities, allowing digital interaction with databases like the DVLA.