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Car tax changes could see current rules scrapped in favour of new system in major update

“A charging mechanism should be based on distance travelled, time of day, location, and level of emissions and impact on the environment of the vehicle. 

“Such variable, distance-based charging would reflect the impacts of individual journeys more appropriately and, unlike clean air zones or congestion charges, account for both pollution and congestion at the same time.”

Chancellor Rishi Sunak froze fuel duty rates for a tenth year running during his budget statement in March. 

However, some have called for the fuel duty to rise if a new road charge comes into effect to help generate extra revenue for the sector.  

The Institute for Fiscal Studies (IFS) estimates the Treasury may have lost £5.5billion a year since 2010-11 for failing to increase fuel duty in line with inflation. 

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