Electric car drivers should pay by the mile to help shore up public finances, think-tank claims

Electric car owners should be charged to drive by the mile to plug a growing hole in the public finances, a leading think-tank has claimed.

The Resolution Foundation has called for a new ‘road duty’ which would see electric-only vehicle drivers charged around 6p a mile.

It would aim to prevent a £28billion hole emerging in the public purse due to a fall in fuel duty receipts as drivers move away from traditional vehicles.

Because the road-pricing system would be administered via the GPS systems fitted in new electric cars, extra charges could be added for driving in towns and city centres.

This would help reduce congestion without local authorities having to pay thousands for CCTV cameras to enforce low-traffic zones, the report published yesterday says. 

The Government takes in around £28billion a year from the fuel duty added to the cost of petrol and diesel at forecourts, which helps pay for schools, hospitals and other public amenities. 

A further £7billion is collected in road tax, from which electric cars are exempt, to help maintain highways. But they will start paying the levy from April 2025.

Jonny Marshall, senior economist at the Resolution Foundation, said: ‘Our tax system needs to keep pace with the electric vehicle transition, in a way that protects low and middle-income households.’

It comes amid warnings e-car drivers risk being left stranded by a growing gap between the number of vehicles on the road and public charge points. 

There is now just one public charge point per 36 cars, with the worst ratio in the north-west of England, where there is one per 85 cars, says the Society of Motor Manufacturers and Trader.