Labour is facing criticism over proposals to digitally track drivers' car mileage as part of a new "pay-per-mile" road tax scheme. The plan, detailed in the small print of the recent Budget, aims to utilize the in-built connectivity and navigation systems found in newer electric and hybrid vehicles to calculate road tax bills.
Officials suggest this digital monitoring could help prevent mileage fraud and streamline the payment process. While the Treasury insists the measure would be opt-in, opponents fear it could be a precursor to mandatory mileage tracking for all drivers and an invasion of privacy. The proposed system, known as "eVED Connect," would allow transport officials to access mileage data digitally, bypassing manual reporting.
Conservative transport spokesman Richard Holden accused Labour of a "U-turn" on privacy concerns, stating, "They want your car gossiping to the taxman every mile you drive." He added that Labour's "war on drivers knows no bounds" and called for the party to "rule out pay-per-mile road pricing for good."
Howard Cox, founder of the FairFuelUK group, echoed these sentiments, calling the plan "Big Brother Britain." He questioned how long the opt-in measure would remain voluntary and expressed concerns that data on where drivers go and what they do could eventually be sought. "Our cars, our journeys, and our freedom to travel anywhere, any way, are ours, not Westminster's," Cox stated.
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." She noted that beyond mileage fraud checks, cars could have mileage monitors reporting directly to the DVLA.
The Treasury stated that the scheme would not require trackers to be fitted to vehicles, nor would it necessitate reporting on where and when miles are driven. However, details on how privacy safeguards would be implemented remain unclear.
The pay-per-mile levy, officially known as "enhanced Vehicle Excise Duty" (eVED), is slated for enforcement from April 2028. The scheme proposes a charge of 1.5p per mile for hybrid vehicles and 3p per mile for fully electric cars. This would be in addition to existing road tax. The levy is projected to increase annually with inflation starting in April 2029. For a driver covering 10,000 miles annually in a pure electric car, this could mean an extra bill of approximately £300 per year.
Ministers aim to introduce the eVED to compensate for declining fuel duty receipts, which generated £24 billion for the Treasury last year as motorists increasingly shift away from fossil fuel-powered vehicles. Previously, drivers submitted their mileage annually for eVED calculation, with checks against MOT readings to deter fraud. This new proposal aims to automate that process using existing vehicle technology.
The introduction of such a system follows reports that police could gain powers to raid the homes of drivers suspected of evading the new tax. The scheme also generated controversy due to the possibility that drivers would still be liable for the tax when driving abroad.
