Tony Blair Institute Proposes Pay-Per-Mile Road Pricing

The Tony Blair Institute for Global Change has proposed a pay-per-mile road pricing system, urging Chancellor Rachel Reeves to implement charges of 1p per mile for cars and vans, and 2.5p to 4p for lorries. This initiative aims to replace lost fuel duty revenue as electric vehicle usage rises, potentially costing the average motorist around £70 annually based on mileage. The proposal seeks to modernize the UK's motoring taxation system and prevent rising road congestion. Although the Labour Party has made no formal plans to adopt the scheme, the TBI argues that it would generate similar revenue to reinstating fuel duties. Historical resistance to road tolling, seen in 2007 when public backlash led to a petition against such measures, looms over current discussions. The report emphasizes that while fuel duty would remain, it would eventually become redundant as the transition to zero-emission vehicles progresses, with charges expected to rise significantly by 2050.