UK Drivers Face New Pay-Per-Mile Charges

UK savers will face an estimated £605 million annual increase in tax by 2029 due to the government's decision to freeze contributions to ISAs, which are tax-free savings accounts. This freeze means that as inflation erodes the value of money, more savers will exceed the contribution limits and start paying tax on their interest earnings. Meanwhile, a potential 'stealth tax' under a Labour government could cost motorists up to £800 a year as the transition to electric vehicles is expected to create a £30 billion gap in fuel duty revenue. Analysts suggest that a pay-per-mile road pricing scheme may be implemented to fill this gap, with rates proposed ranging from 1p to 6p per mile, translating to significant annual costs for drivers. Critics argue that such measures could disproportionately impact lower-income households and that the proposed changes lack clarity and feasibility. The combined effect of these policies indicates a challenging financial landscape for both savers and drivers in the UK.