Pay-per-mile car tax changes could force petrol and diesel motorists to ditch vehicles for trains

Train driving, cars driving and an electric vehicle charging

Half of drivers are worried about car tax changes and motor insurance prices

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Hemma Visavadia

By Hemma Visavadia


Published: 03/09/2024

- 09:54

Updated: 03/09/2024

- 11:24

One-third of drivers worry car tax hikes will make them stop driving

The proposed pay-per-mile tax changes are forcing more petrol and diesel drivers to consider taking the train as their main form of transport.

Experts have warned that the new tax measures, which could be announced in the near future, and the price of car insurance will make journeys for drivers even more expensive.


A recent report found that nearly half (49 per cent) of drivers are seriously worried about the increase in petrol prices, motor insurance and car tax.

More than a third (38 per cent) of motorists think that if costs continue to rise, they will be forced to stop driving.

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Man taxing his car

Car tax changes are predicted to 'level the playing field' for petrol, diesel and electric cars

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Shockingly, the report revealed that two million car owners have already stopped driving this year because of the rising cost of motoring.

Kathryn O'Brien, customer experience and transformation director at TransPennine Express said: “We could be on the precipice of a huge transformation in the way we travel according to our latest research.

“Car running costs are increasing year on year, faster than the rate of inflation and they’re that high that it’s forcing them off the road.”

Meanwhile, the report highlighted how those between 17 and 24 years of age have been impacted the most by cost hikes, with the average car insurance quote rising by £688.

As a result, more than a quarter (28 per cent) of drivers will now switch to travelling by train with 13 per cent of drivers statingthat if costs don’t come down, they will stop driving forever.

O'Brien added: “Our affordable prices mean that if Britons want to make the switch and start travelling by train, they can sit back, relax and make the most of our modern, clean and comfortable trains without watching the pennies as they get behind the wheel.”

The Rail Delivery Group compared passenger emission data from rail journeys to the same trip taken by car.

It found that across 100 routes, travelling by train was almost nine times greener than using a petrol or diesel car.

Using the train was also more than four times greener than using a hybrid car and almost two-and-a-half times greener than using an electric car.

The expected pay-per-mile tax scheme would replace the current Vehicle Excise Duty which imposes higher tariffs on higher-polluting vehicles.

It would charge motorists for every mile they drive instead of based on the level of car emissions. Notably, the proposed changes would help level the playing field between how much tax petrol, diesel and electric cars pay.

Some have called on Chancellor Rachel Reeves to introduce the tax measures in the upcoming Autumn Budget on October 30.

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It comes after Prime Minister Keir Starmer warned that the Government would need to desperately fill the £22billion public finance black hole left over from the previous Conservative administration.

Simon Williams, head of road policy at the RAC said: “We think replacing fuel duty with a pay-per-mile system as soon as possible is the way forward as then the only tax levied on fuel would be VAT.”

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