Warning car tax changes could hit families and put people out of work

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Warning car tax changes could hit families and put people out of work

According to one expert, vehicle tax plans that could put drivers under pressure for miles could force people to see their families less.

The planned government plans to charge drivers for every mile they drive, rather than the current flat rate. This could also lead to many people becoming unemployed. the express reports.

According to several press reports, Federal Chancellor Rishi Sunak is to examine the new proposals for road user charges in order to close a gap in the state budget.

But while some say it could reduce congestion at peak times when people drive less, one expert has warned the cost could hit the poorest – and cost over £ 500 a 400 mile trip.

Such a move could hit those who travel to large families – and businesses where employees have to travel long distances hard.

Richard Alvin, director of Capital Business Media, which also owns electric car company EV Powered, says those who spend a lot of time on the road will be hardest hit.

He said the new fee would result in drivers paying “significantly more” to use their cars.

Mr Alvin told the Express: “While the Chancellor has all sympathies, these proposed changes will result in families seeing their extended families less and craftsmen becoming unemployed as companies simply cannot afford to use their vehicles.”

He added: “In all honesty, I think that the small businesses, self-employed drivers or salespeople who spend a lot of time on the road, and the poorest drivers are hardest hit.

“It’s unclear what the fee per mile will be, but initial proposals suggest it is roughly the same as the fuel tax for similar kilometers, which means a 75p per mile fee on a family visit from London to Yorkshire Could lead – a round trip of 400 miles – costs £ 533.

“[This] is significantly higher than the equivalent cost of topping up gasoline for the same trip.

“There are rumors that, for example, employers offering their employees free parking will be introducing fees and more fee zones across the UK.

“I think the biggest impact of all of these measures will be that unnecessary travel will decrease.

“I expect it will be more difficult for people to manage the cost of running a car, be it electric or gasoline.”

The government has to lose £ 40 billion in plans to ban gasoline and diesel cars from 2030 and to promote electric cars.

This is because the fuel tax and vehicle excise tax will decrease.

The proposed new system would install cars with so-called telematics devices to track mileage and calculate total charges.

The plans for the program are believed to be under development, although they are not intended to be rolled out immediately.

Mr Alvin said he expected a change in how road tax is calculated – but warned that this would not be a “positive” update for motorists.

He said: “The fuel tax is calculated at 57.95 pence per liter for gasoline and diesel vehicles and is expected to bring in 27.5 billion pounds sterling this fiscal year, which is 1.3 percent of national income, according to recent forecasts.

“The vehicle excise tax levied on car purchases based on emissions levels will bring in £ 7.1 billion, while VAT on fuel will be £ 5.7 billion.

“As the fee per mile comes up and the number of drivers on the road decreases, that income will decrease significantly.

“I assume that the calculation of the vehicle tax will change in the coming years – not even positively.”

However, the program was supported.

Write in the city of AMEamonn Ives, a researcher at the Center for Policy Studies, said: “Taking road tolls would charge a premium for travel during rush hour, while lowering costs during quieter times. This would create an incentive for those who can happily wait around noon travel and clear the roads for those who need them most at peak times. “

Sky News reports that a road pricing system was last proposed by Tony Blair’s administration in 2007 but was dropped due to opposition from motorists.

AA President Edmund King said: “The government cannot afford to lose £ 40 billion in fuel taxes and road taxes when the electric revolution comes.

“Road tolls are always believed to be the solution, but these have been increasing every five years since 1964 and are still viewed by most as ‘polling taxes on wheels’.”

Nicholas Lyes, Head of Road Policy at the RAC, said: “Although the non-payment of road tax is clearly an incentive to drive fully electric at the moment, we will very soon need a system that tax both conventionally powered and battery-electric vehicles fairly can raise.

“If this is not addressed, we run the risk of finding ourselves in a situation where gasoline and diesel drivers continue to pay the entire tax for using the roads, which is unsustainable.”

The Treasury did not comment on the proposals.

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