The Government has created fresh uncertainty around potential road pricing reforms after clarifying a statement made by Transport Secretary Heidi Alexander in Parliament.
Commons Statement and Subsequent Clarification
During questioning from MPs on Thursday morning, Ms Alexander explicitly stated there are "no proposals to introduce a national pay-per-mile scheme" when Conservative MP Charlie Dewhirst raised concerns about the potential impact on rural motorists.
However, in a significant development later the same day, a source close to the Transport Secretary revealed she had misspoken during her Commons appearance. The clarification indicated Ms Alexander had intended to rule out a broader national road pricing system, which could encompass various charging mechanisms like tolls and congestion charges, rather than specifically a distance-based scheme.
Ms Alexander had earlier sought to reassure motorists, declaring "This Government is firmly on the side of drivers," while highlighting the £24 billion being invested in motorways and local roads, including repairs to infrastructure like bridges and tunnels.
Budget Speculation and Electric Vehicle Taxation
The timing of this clarification is crucial, coming just days before the Chancellor's Budget announcement. The government faces a growing financial challenge as the shift toward electric vehicles (EVs) reduces revenue from traditional fuel duties, which generated nearly £25 billion in the 2024/25 financial year.
Earlier this month, reports suggested Chancellor Rachel Reeves was preparing to announce a 3p-per-mile charge for electric vehicle drivers, potentially coming into effect from 2028 following a consultation period. Under this understood proposal, drivers would be charged based on estimated travel without widespread electronic tracking of their movements.
Mixed Messages and Future Implications
A Government spokesperson had previously advocated for "a fairer system for all drivers whilst backing the transition to electric vehicles," noting support through grants reducing upfront costs by up to £3,750 per eligible vehicle.
They added: "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."
The day's conflicting messages leave the door open for potential road pricing measures in next week's Budget, creating uncertainty for the UK's drivers, particularly those in rural areas who MPs warn would be disproportionately affected by any pay-per-mile system.
