Drivers could receive ‘free miles’ or exemptions from new car tax pay per mile scheme

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The Committee has said “concessions” could be made to certain groups of drivers under a new road pricing structure for “societal fairness”. They claim these groups could include drivers with “mobility issues” or motorists who live in remote areas” and need to travel further to reach amenities.

The report adds that these special groups could receive “free travel miles” which would exclude them from some initial payments.

The report said: “​​In designing a replacement for fuel duty and vehicle excise duty, the Government must examine how an alternative road pricing mechanism can use price as a lever for change while subjecting motorists to fair levels of taxation.

“To that end, it may seek to make concessions in the interests of societal fairness.

“Such as providing an annual allowance of free travel miles or gearing the system to support vulnerable groups, such as those with mobility issues, and people who reside in the most remote areas.”

READ MORE: New car tax changes could ‘pull the plug’ on EV progress

They warn the “situation is urgent” and added “work must begin without delay” on the new scheme.

Chancellor Rishi Sunak is understood to have considered launching a pay per mile scheme before.

However, it was reported plans for an announcement were scrapped just days before the Autumn Budget last year.

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